Avoiding Foreclosure (Part 2)
Assistance for Unemployed Homeowners
Home Affordable Unemployment Program (UP)
If you are having a tough time making your mortgage payments because you are unemployed, you may be eligible for UP. UP provides a temporary reduction or suspension of mortgage payments for at least 12 months while you seek reemployment.
Federal Housing Administration (FHA) Special Forbearance
If you are having difficulty making mortgage payments because you are unemployed and have no other sources of income, you may be eligible for FHA's Special Forbearance. FHA now requires servicers to extend the forbearance period, by offering a reduced or suspended mortgage payment for up to 12 months for FHA borrowers who qualify for the program.
Managed Exit for Borrowers
Home Affordable Foreclosure Alternatives (HAFA)
If your mortgage payment is unaffordable, and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or a deed in lieu of foreclosure through HAFA.
Redemption
Redemption is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process.
Contact your lender.
If you are experiencing difficulties making your mortgage payments, you are encouraged to contact your lender or loan servicer directly to inquire about foreclosure prevention options that are available: Link opens in a new windowhttps://www.hud.gov/program_offices/housing/sfh/econ/contactyourlender. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief, there are organizations that can help by contacting lenders and servicers on your behalf: Link opens in a new windowhttps://www.hud.gov/topics/avoiding_foreclosure/workingwithlenders.
Assistance for FHA-Insured Homeowners
The FHA, which is a part of the U.S. Department of Housing and Urban Development (HUD), is working aggressively to halt and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA offers a number of loss-mitigation programs and informational resources to assist FHA-insured homeowners and home equity conversion mortgage (HECM) borrowers who are facing financial hardship or unemployment and whose mortgage is either in default or at risk of default.
- Log on to the NSC Loss Mitigation Programs home page here: Link opens in a new windowhttps://www.hud.gov/program_offices/housing/sfh/nsc/lossmit.
- Visit here for answers to Frequently Asked Questions about FHA's loss mitigation programs: Link opens in a new windowhttps://www.hud.gov/FHAFAQ.
Contact FHA
FHA staff are available to help answer your questions and assist you to better understand your options as an FHA borrower under these loss-mitigation programs. There are several ways you can contact FHA for more information:
- Call the National Servicing Center at 1-877-622-8525.
- Call the FHA Outreach Center at 1-800-CALL FHA (800-225-5342).
- Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at 1-800-877-8339.
- Email the FHA Resource Center at answers@hud.gov.
- Visit the Online FHA Resource Center: Link opens in a new windowhttps://www.hud.gov/program_offices/housing/sfh/fharesourcectr.
U.S. Department of Housing and Urban Development (HUD). (n.d.). Avoiding foreclosure. Retrieved November 1, 2018, from https://www.hud.gov/