Foreclosure and Loss Mitigation - What You Should Know About FHA and VA

Almost everyone gets into financial trouble at some point in life. The reasons can be many, but when it comes to your mortgage payment, we learned that lenders do not care about the reasons - the ONLY organization that cared about our situation was the one that GUARANTEED our loan: The United States Veterans Administration. Yes, it's true. In fact, there are numerous foreclosure prevention options available through The Federal Housing Administration (FHA) and The Veterans Administration (VA) guaranteed home loan programs that were not offered through our lender until the VA intervened in the loss mitigation process. We saved our home from foreclosure with help from the VA office. Below is our story and resource information that will hopefully save you money in the end.

START WITH THE PEOPLE WHO REALLY CARE

Millions of homeowners have loans that are guaranteed by FHA or VA. FHA became part of the Department of Housing and Urban Development (HUD) in 1965. If you are not sure whether you have a guaranteed loan program, check the folder you received from your title company when you purchased your home or ask a realtor to look at the papers. Even if your mortgage is not guaranteed, HUD, FHA, and VA resources have housing counseling agencies, legitimate refinancing agencies who do not engage in unlawful predatory lending practices, debt relief scams, and information about consumer rights for lending. You may even be eligible for relief from natural disasters or if you are or your spouse is active duty military.

In addition to contacting your mortgage lender, please contact a HUD Counselor or the FHA or the VA as soon as you know you are in trouble. Don't wait until the bank contacts them with threats of foreclosure - you might save the $4000 we were charged in extra interest and penalties while waiting for our bank to help.

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