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HomeSave My House Government Program

Save My House Government Program

State And Federal Assistance Programs Can Help You Keep Your Home

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Feeling overwhelmed by your mortgage payment? It may be that the total cost of homeownershipfrom your house payments to utilities to insurance costswasnt quite clear to you before you took the plunge. Or perhaps you suffered a job loss or an unexpected family medical emergency. No matter the reason, falling behind on your mortgage payments is always a scary prospect.

So, what do you do when you just cant make ends meet? Before doing something drastic, like skipping out on your loan payments, consider getting some help. There are plenty of government mortgage assistance programs that can help you get back on your feet. Lets take a look.

How Do I Apply

The National Council of State Housing Agencies has a map where you can find out where to apply in your state. Some states are still in the process of opening their programs.

At the start of March, 24 states, Puerto Rico and Guam had already done so, and almost all programs have been approved by the Treasury Department.

“We expect virtually all programs will be open by June,” Williams said.

Department Of Housing And Urban Development

The U.S. Department of Housing and Urban Development has a foreclosure prevention department, working with homeowners and lenders to address issues facing struggling borrowers. As part of HUD’s services, the Special Forbearance program gives unemployed homeowners a suspension of their mortgage payments for 12 months, with an extension possible for another 12. There is also an emergency loan program.

For homeowners underwater on mortgages, meaning the loan is valued higher than the home’s value, HUD offers a Principal Reduction Alternative program and a Treasury/FHA Second Lien program. Both of these programs require borrowers to be current on all mortgage payments. A HUD counselor works with homeowners, assisting in the negotiation with lenders to reduce principal and overall debt associated with the home.

Other modification programs exist, but many programs have expired or are expiring. These include Home Affordable Modification Program and Home Affordable Refinance Program , which are being replaced with more comprehensive modification programs. While these don’t pay for the house per se, they make staying in the house more affordable. Talk to a local HUD counselor for current options.

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Additional Actions To Take:

These are additional steps that can be taken in addition to applying for HomeHelpMN:

  • Explore an affordable loss mitigation work-out solution. Lenders and homeowners should communicate about what options are available. Additional resources are available through the Consumer Financial Protection Bureau.
  • Connect with a local HUD-approved housing counselor. HUD-approved housing counselors provide free, unbiased, confidential services to help homeowners make choices to address their housing needs. Homeowners can connect with foreclosure prevention services via the Minnesota Homeownership Center.
  • Apply for the Energy Assistance Program. Homeowners may qualify for help with energy bills and future energy costs, including delivered fuels. Visit the Minnesota Department of Commerce or call 1.800.657.3710 to learn more about eligibility and apply.
  • We encourage you to about HomeHelpMN for more information about the program and timeline.

    If you have concerns regarding potential fraud, misuse of funds, or related concerns regarding the HomeHelpMN program, the following avenues are available through NavexGlobal/EthicsPoint:

    • You may call 866-886-1274 and an EthicsPoint Contact Center Specialist will record your concerns and collect the information needed.

    What Else Do I Need To Know Before Starting A Home Repair

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    Tips for Hiring a Contractor

    Finding a good contractor to do repairs and improvements to your home is important. Before hiring a contractor, get tips from the Federal Trade Commission on avoiding home improvement scams. Also, find out how you can report a problem, if you encounter any issues with work you’ve had done on your home.

    Watch Out for Utility Lines Before You Dig – Call 811

    Before digging on your property, . Utilities will come out to mark the area to help you avoid damaging or being injured by underground utility lines. The timing for processing your request differs from state to state. Some states allow for an online digging request.

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    Get Professional Help Exploring Options

    Foreclosure is a stress-filled situation no homeowner wants any part of, but unexpected financial setbacks happen and it helps to know where to go for assistance.

    Fortunately, there are many professional resources available for homeowners who find themselves in need of assistance. They include:

    Public Housing Counselors provided by the US Department of Housing and Urban Development are equipped to assist with all housing-related situations, from buying a home, to renting, to foreclosure.

    Lawyers can handle issues related to a foreclosure proceeding, but there will be fees involved.

    can be provided by nonprofit credit counselors, who are trained to help navigate situations involving credit card debt, medical debt and also homeownership.

    The first stop always should be your lender. They dont want to foreclose on you. It costs them far more to foreclose a home than to work with the consumer on finding an affordable mortgage payment. Ask them for assistance and you will be surprised at how willing they are to keep you in the home.

    If that doesnt work, research the many programs offered by the Department of Housing and Urban Development, the federal agency that oversees housing issues in the United States.

    In short, there are ways to deal with foreclosure.

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    The Emergency Homeowners Loan Program :

    This program was created to help homeowners who experienced a reduction or loss of revenue and faced foreclosure because of unplanned unemployment/underemployment/medical emergency. The program was supposed to complement the HFF by supporting the states that were not covered under the Hardest Hit Fund.

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    Streamline Refinancing For Fha Va And Usda Loans

    Popular mortgage relief programs since 2009 have only been available to homeowners with conventional mortgages backed by Fannie Mae or Freddie Mac.

    But what if your loan is government-backed?

    Homeowners with federally-backed FHA, VA, and USDA mortgages have access to different mortgage programs than those with conventional loans.

    Namely, they can use a Streamline Refinance.

    The Streamline Refinance is a special mortgage refi program for people with government-backed loans. Its similar to a mortgage relief refinance because you can use a Streamline Refi even if your home is underwater or has very little equity.

    And a Streamline Refinance has other benefits, too.

    • Theres less paperwork because you dont have to re-verify your income or employment or get the home appraised
    • Government-backed loans typically have below-market mortgage interest rates
    • Closing costs are typically cheaper

    Homeowners can qualify for an FHA Streamline if theyve made at least three consecutive on-time payments on their existing FHA loan.

    Even if you make your three consecutive payments while in forbearance, you may qualify for FHA Streamline refinancing. The Department of Housing and Urban Development , which oversees the Federal Housing Administration, is one of the more lenient housing agencies.

    For a VA Streamline Refinance , the rules are more lenient.

    What To Expect After You Apply:

    Federal government to pay $5,000 for home energy retrofits
    • Endeavors will review your application and confirm the details of your application with you.
    • Endeavors will determine how much youll receive in mortgage assistance.If there is a question of eligibility, Endeavors may request more information from you.
    • If determined eligible, you will generally receive your first payment within 10-14 business days.
    • Endeavors will review your application and confirm the details of your application with you.
    • Endeavors will determine how much youll receive in mortgage assistance.If there is a question of eligibility, Endeavors may request more information from you.
    • If determined eligible, you will generally receive your first payment within 10-14 business days.

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    Types Of Home Equity Loans

    There are two types of home equity loans:

    • Lump sum – This is a one-time, closed-end loan that usually has a fixed interest rate.
    • Revolving line of credit – You can withdraw the funds at any time for more flexibility. These usually have adjustable interest rates.

    For more information, refer to What You Should Know About Home Equity Lines of Credit, a guide by the Federal Reserve Board.

    Single Point Of Contact

    When you request a loan modification or other foreclosure-prevention option, your mortgage servicer must promptly establish a single point of contact , which may be an individual or team to assist you with the process.

    • The SPOC should guide you through application requirements and deadlines
    • The SPOC should provide you with the status of your application
    • The SPOC should inform you of missing documents or information needed to complete your application
    • The SPOC should have access to personnel with authority to stop or pause foreclosure proceedings, when necessary, during the application evaluation period.

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    If You Have Missed A Mortgage Payment Know Your Rights

    California homeowners have additional protections thanks to the California Homeowner Bill of Rights . HBOR provides protections to homeowners who are at risk of foreclosure. If you own and live in your home, HBOR generally applies to your first lien mortgage. Key HBOR provisions require your mortgage servicer to:

    Usda Rural Housing Service Guaranteed Loan Mortgages

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    USDA Rural Housing Service does not require a lump sum payment at the end of the forbearance. If you can resume making regular payments your servicer or lender should either offer an affordable repayment plan or term extension to defer any missed payments to the end of the loan. If you are unable to resume making regular payments, your servicer or lender should evaluate you for all available loss mitigation options.

    Upon completion of the forbearance, the lender shall communicate with the borrower and determine if the borrower is able to resume making regular contractual payments. If so, the lender shall offer the borrower a written re-payment plan to resolve any amount due or, at the borrowers request, extend the loan term for a period that is at least the length of the forbearance.

    Visit USDA Rural Developments coronavirus website for more information on forbearance for USDA guaranteed loans.

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    Mortgage Relief Programs For 2022

    If youve had a temporary job loss or reduction in income, it can be hard to keep up with mortgage payments especially with an above-market mortgage rate thats keeping your payments artificially high.

    Luckily, there are mortgage relief options that can help. The right one for you will depend on your current financial situation.

    Five homeowner relief options in 2022 include:

  • Refinance to a lower interest rate and/or extended loan term
  • Use a Streamline Refinance
  • Ask for loan forbearance to pause your mortgage payments
  • Ask about the Homeowner Assistance Fund
  • Talk to your mortgage servicer about a loan modification
  • Currently, theres no Congress mortgage stimulus program or GSE rescue package. But homeowners have plenty of alternatives.

    Many lenders are offering forbearance for as long as Covid is considered a National Emergency. And over a million homeowners are still eligible to refinance despite rising rates.

    So explore your options. If youre not sure where to begin, start by reaching out to your mortgage loan servicer.

    Your servicer will help you understand your choices and determine which mortgage relief path is right for you.

    Keep You In The Loop About The Loan Modification Process Including Pointing Out Any Missing Information

    Within five business days of your loan modification application submission, your mortgage servicer is required to acknowledge the submission offer a description of the loan-modification process point out any missing information or other errors and let homeowners know of all deadlines for completing the application.

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    Frequently Asked Questions About Hvac Rebates

    How do rebates work?

    Usually you must pay for the upgrades yourself and you will receive a partial refund in the mail afterwards.In most cases, the process is as follows: You check for available rebates in your area and carefully study the terms and requirements . You may have to fill out an application first. If required, you have an energy audit done by a Certified Energy Auditor thats approved by the entity offering the rebate.You have the upgrades done by a reputable local HVAC contractor In some cases the contractor is responsible for applying for the rebates after the work is done, or it may be up to you. Sometimes a final energy audit is required.Youll typically receive a reimbursement cheque in the mail The process outlined here is just a general guideline and the details will obviously vary in your case. Thats why it can be a good idea to enlist the help of a local HVAC expert ahead of time to help you through the process of replacing your furnace and getting the rebates.Note that in certain cases may pay for the upgrades directly but this is relatively rare.

    How can I qualify for rebates?How much can I save?

    Typically anywhere from a few hundred dollars to $1000 or more, depending on the rebate program, how many eligible upgrades are completed . Remember that you must usually pay for the upgrades first and then receive a cheque afterwards.

    Can I use the rebate money to pay for the upgrades directly or get the money ahead of time?Whats the catch?

    Streamline Refinance Your Government

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    Youve probably heard of refinancing, which is the act of securing a second mortgage to pay off your first. There are plenty of reasons for this, including changing your rate terms or rate length.

    Streamline refinances are available for government-backed loans. Unlike typical refinances, streamlined refinances require limited credit documentation and underwriting, which may make them easier to achieve. Be aware that your loan must be current in order to qualify for a streamline refinance.

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    Refinance To Lower Your Payments

    Refinancing can offer homeowners relief by reducing their monthly payments. Most of the time, a refinance will lower your interest rate and extend your loan term both of which result in a more affordable monthly mortgage payment

    Thanks to rising home values, even homeowners who made a very small down payment or refinanced recently could be eligible for a refi.

    Whats more, not everyone needs great credit or perfect finances to qualify for a refinance.

    Even if you dont think youd qualify for a refinance, its worth talking to a lender. Many homeowners are eligible but dont know it yet.

    Select programs, like the government-backed Streamline Refinance, can help borrowers refinance with little, no, or negative home equity.

    Even if you dont think youd qualify for a refinance, its worth talking to a lender.

    Homeowners might be surprised at the amount of equity they gained as housing prices shot up nationwide. This could put refinancing within reach even if you had no home equity quite recently.

    Second Lien Modification Program :

    This program was created to help homeowners whose first mortgage was permanently modified under the Home Affordable Modification Program and that have a second mortgage on the same property. This may qualify you to get a reduction on the principal or a modification of your second mortgage under 2MP.

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    Residential Rebates By City/region

    Toronto: The City of Torontos Home Energy Loan Program provides low-interest or zero-interest loans up to $125,000 to homeowners who want to make home energy improvements. The money can be used to pay for:

    • Purchasing high-efficiency boilers, furnaces, air conditioners, and water heaters
    • Replacing doors and windows
    • Installing geothermal or solar hot water systems
    • Replacing toilets

    Toronto: Through the RBC Energy Saver Loan, you can get a $100 rebate for a home energy audit, or get a 1 percent interest rate discount on a $5,000+ loan for energy-efficient products or services for your home.

    Toronto: Through the Eco-Roof Incentive Program, the City of Toronto is offering grants to help home and building owners install green or cool roofs. Through the program, you can get:

    • $100 per square meter to install a green roof
    • $1,000 for a structural assessment before installing a green roof
    • $2 to $5 per square meter for a cool roof

    Homeowner Assistance For Victims Of Covid

    Save Money By Being Eligible For The Government Home Affordable ...

    The federal government offered the first bit of foreclosure help through Fannie Mae and Freddie Mac, the government lending agencies that back 29 million homeowner mortgages.

    Fannie Mae and Freddie Mac said eligible homeowners those who have lost income because of COVID-19 and hold loans backed by the Department of Housing and Urban Development, the Department of Veterans Affairs and the Federal Housing Finance Agency could have mortgage payments suspended or reduced for up to 12 months, but that ended July 31, 2021.

    The private lending industry, which includes banks, finance companies, servicers and mortgage investors, followed suit. It said it would suspend payments if the coronavirus has reduced a homeowners income, made them ill or kept them from working. Many banks put a hard 12-month deadline on that policy, while some extended it to 18 months.

    If you owe several months of payments, it would be best to contact your lender and see what COVID-19 related financial assistance is still available.

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