HUD Loans to Help Prevent Foreclosure? Comments Off
HUD has just announced a new program that will essentially give no interest loans to homeowners who have had a loss in income, to help them make their mortgage payments.
The program will work through a variety of state and non-profit entities and will offer a declining balance, deferred payment “bridge loan” (zero percent interest, non-recourse, subordinate loan) for up to $50,000 to assist eligible borrowers with payments on their mortgage principal, interest, mortgage insurance, taxes and hazard insurance for up to 24 months.
Under the program, eligible borrowers must:
1. Be at least three months delinquent in their payments and have a reasonable likelihood of being able to resume repayment of their mortgage payments and related housing expenses within two years;
2. Have a mortgage property that is the principal residence of the borrower, and eligible borrowers may not own a second home;
3. Demonstrate a good payment record prior to the event that produced the reduction of income.
via HUDNo.10-176/U.S. Department of Housing and Urban Development (HUD).
While the idea will probably be good for reducing foreclosures, it’s never a good idea to try and pay off debt by adding more debt. Like most of the government housing programs, this will probably cost a lot more than any good it will do.
It’s not available everywhere, but just in the “hardest hit areas.” Distressed borrowers may be eligible in places like: California Real Estate, Florida Real Estate, Georgia Real Estate, Illinois Real Estate, Kentucky Real Estate, Michigan Real Estate, Mississippi Real Estate, Nevada Real Estate, New Jersey Real Estate, North Carolina Real Estate, Ohio Real Estate, Oregon Real Estate, Rhode Island Real Estate, South Carolina Real Estate, Tennessee Real Estate, and Real Estate in Washington DC.