Top Ways To Stop Foreclosure: Options For Los Angeles Homeowners

President Obama’s Mortgage Relief Plan offers several programs to help avoid foreclosure.  Homeowners struggling with monthly mortgage payments should take note of these prevention methods as implemented by the US treasury and and  HUD.  Here are several options to prevent foreclosure.

1.  Modify or refinance your loan for lower monthly payments: Programs like HAMP and PRA are designed to help homeowners ease the monthly burden.

2.  Refinance: Like many homeowners, you may have seen a dramatic increase in the value of your house.  You might be able to refinance through HARP, a program designed to help you refinance into a more affordable and stable mortgage.  Through FHA2LP, if eligible, you might be able to get your second mortgage reduced as well.

3.  Assistance for Unemployed Homeowners: If you can’t pay your mortgage because you are unemployed, UP provides a temporary reduction or suspension of payments while you seek reemployment.

4.  Short sale:  In a short sale, a lender or bank will accept less than what’s owed on the house.  Lenders are open to short sales because it’s easier to cut their losses and not deal with the difficulties of the foreclosure process than to try to collect from a homeowner who doesn’t have the money they owe.

Short sales are the best option simply because these other programs are seemingly a temporary fix.  With a short sale, you can cut your losses for good and rid yourself of your monthly payments, alleviating your debt and the possibility of foreclosure.  If you are in hoping to prevent  foreclosure on your home in the greater Los Angeles area, contact Housing Assist of America for further information on the short sale process.

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