Government programs to stop foreclosures

Foreclosure is when the lender takes back the property after the homeowner fails to make required payments on a mortgage. Foreclosure processes differ by state. In some states, the lender has to go to court to foreclose on your property judicial foreclosure , but other states do not require a court process non-judicial foreclosure.

Generally, borrowers must be notified if the lender or servicer begins foreclosure proceedings. Under federal law, a servicer generally cannot start the foreclosure process until your loan is more than days past due. Effective August 31, , servicers generally cannot start the foreclosure process until January 1, , before reaching out or evaluating your complete application for options to help you avoid foreclosure.

If your servicer contacts you near the end of your forbearance, they generally must tell you:. To determine which program is best for you--or if you are even eligible--you need to know some basic facts. The foreclosure process begins once you start missing mortgage payments.

By the fourth missed payment, according to HUD, you are perilously close to losing your home. You should not wait until this point to seek help. Making Home Affordable and HOPE for Homeowners accepts mortgage holders who believe they are at risk of default as well as those already behind.

The overarching aim of these programs is to bring your monthly mortgage payment down to a more manageable level. Eligibility varies from program to program. The federal government requires lenders who service Fannie Mae and Freddie Mac loans to participate in Making Home Affordable; all others are "encouraged" to take part. To refinance through Making Home Affordable, you must be current on your loan and realistically be able to meet the payment obligations of your new loan. One sign of a scam is when they ask for a fee in advance.

Learn how to spot housing scams and report housing scams. Find out how to detect, report, and protect yourself against these scams. Get reliable foreclosure help and counseling through the government's Making Home Affordable program. Or find a government certified housing counselor near you.

Read more about foreclosure scams and find phone numbers to call for help. Learn about your legitimate government-approved mortgage and foreclosure help options.

There are several ways you can contact FHA for more information, including:. Skip to main content. Related Information.