Getting Mortgage Assistance

There is nothing more comforting than owning your own home. Because home ownership is so important to the overall stability of the nation’s economic health, the Federal Housing Administration (FHA) was created to serve as a government backer of home mortgages, 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 foreclosure crash of 2008 came upon us. Not even the FHA has been able to prevent millions of Americans from losing their homes.

Since the FHA looks to be unable to save homeowners from this sagging economy, homeowners have no other option but to help themselves. Three basic options are available for struggling homeowners when it comes to their mortgage.

Loan Modification: You 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 income and just need some help making it through some tough times, your lender or another lender should be willing to work with you so you can keep your home.

Short Sale: The second option is to sell the home. 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 their conditions improve. Unfortunately, the large number of homes on the market makes selling very hard in many cases.

Strategic Default: Finally, you can simply walk away. The borrower simply stops making payments and leaves the home. Though your credit rating will be severely damaged, for those with little or no equity, this is often the best decision they can make.

However you must decide carefully. 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.