FHA Insured Loans and Foreclosures
If you are not sure if your mortgage is FHA insured, you can look at your original mortgage papers or call your mortgage lender and ask.
Here are some examples of special programs that may be able to help you avoid foreclosure if your mortgage is FHA insured:
If you recently started earning less money or had an increase in expenses, you might be able to arrange a new payment plan based on your situation. This could even include a temporary reduction in or suspension of your payments. You will need to provide proof of your current financial situation to your lender.
If you were having financial problems but your situation is better now, you may be able to refinance your debt or extend the term of the mortgage, which would make your monthly payments smaller.
- You are at least 4 months behind on your loan, but not more than 12 months behind; and
- You are able to begin making full mortgage payments now.
- You are at least 2 months behind on your mortgage payments;
- You are able to sell your home within 3-5 months; and
- A new appraisal shows that the value of your home meets certain HUD guidelines.
Deed-in-Lieu of Foreclosure
- You are behind in your mortgage payments and you don't qualify for any other alternative;
- You have tried to sell your house, but could not sell it; and
- You don't have another FHA mortgage in default.
Reviewed August 2009