How Do I Choose the Best Mortgage Assistance Program?

Kristie Lorette

A mortgage assistance program helps homeowners who are in danger of going into foreclosure on their homes. Two primary types of mortgage assistance programs exist: government-sponsored and lender-sponsored. In order to choose the best program for you, you first have to identify the criteria or qualifications in order to take advantage of the program.

A mortgage assistance program is designed to help homeowners prevent foreclosure.
A mortgage assistance program is designed to help homeowners prevent foreclosure.

The first place to start to identify the best mortgage assistance program for you is with your lender. Contact the loss mitigation department of your mortgage company and speak to a representative in this area. Explain to them the financial hardship you have endured that is causing a problem with your ability to make your mortgage payments. In order to start a loan modification, this is the department that can start the process with you.

A mortgage modification is one of the best mortgage assistance program options because it allows you to keep your home out of foreclosure. A mortgage modification allows the lender to change the existing terms and conditions of your mortgage. The changes put you in a position where you can afford to make the payments on your mortgage, keep your home out of foreclosure and remain living in your home.

If your mortgage lender does not agree to do a mortgage modification, then the best mortgage assistance program option may be with a federal program. Since the downturn in the economy and the record high foreclosure rates, numerous government programs have emerged to help homeowners. Whether or not this is the best option for you depends on your personal financial situation.

For example, some of the mortgage assistance programs are only available to borrowers that have FHA mortgages. Other programs require that the mortgage have been established on or before a specific date. Other criteria may be that the borrower is not in default on their mortgage payments.

The best way to choose the mortgage assistance program that will work for you again is to talk with your lender. The lender can help guide you toward government programs that you may eligible for. If you are not getting the answers and guidance you need from your lender, then you can contact HUD or FHA directly. These agencies can assist you in finding a lender that can help determine if you qualify for any of the assistance programs and process your application if you do qualify. No one mortgage assistance program is better than another. Which one works for you depends on your lender and the specific criteria that you have to meet to use the program.

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