subject: Aid for Mortgage Trouble [print this page] Aid for Mortgage Trouble Aid for Mortgage Trouble
There is nothing as satisfying and comforting as owning one's own home. It has always been seen as the standard by which success is measured. Because home ownership is so important to the overall stability of the nation's economic health, President Franklin Roosevelt created the Federal Housing Administration (FHA) to serve as government backer of home mortgages, so as to protect the economy from a large number of home foreclosures. For nearly 80 years the FHA has done its job and foreclosures have been kept to a minimum. Then the great crash of 2008 hit. Not even the FHA has been able to prevent millions of Americans from losing their homes.
Since the FHA can't seem to save homeowners from the sagging economy and foreclosure, owners have no other option than to help themselves. There are three basic options that struggling homeowners have when it comes to their mortgage.
They can try to refinance the loan in order to secure better terms and lower their monthly payments. Banks are often willing to do this since they want to minimize the number of foreclosed homes on their books. If you still have an income and just need some help making it through some tough times, your lender or another lender should be willing to work with you and you can keep your home.
The second option is to sell the home. Though no one wants to be forced to sell, in many cases this is the best route. The homeowner may have to take a loss since the housing market is so depressed, but they will at least walk away with a clean credit history and will be able to purchase a new home when conditions improve. Unfortunately, the large number of homes on the market makes selling very hard in many cases.
The third option is to simply walk away. The borrower simply stops making payments and leaves the home. Though your credit rating will be severely damaged, for those owners with little or no equity, this is often the best decision.
Choose your decision carefully based off all the factors present. Losing a home is a sad but real part of daily life. Keep in mind that you are not alone and it doesn't mean a permanent end to your dreams of home ownership.
