HUD to Lenders: Cut Ike Victims Some Slack
Troubled borrowers who were ravaged by Hurricane Ike will be glad to know that they need not worry about their mortgage problems in the mean time. Instead of thinking of ways to stop foreclosure, these homeowners can focus on recovering from the losses they incurred when the said hurricane passed through their cities.
For the Department of Housing and Urban Development Secretary Steve Preston, distressed homeowners living along the coast of Texas deserve to be given some break from the collection efforts of their lenders. In fact, HUD is urging private lenders to consider the situations of these distressed homeowners.
As for the federally-insured mortgages, the HUD has already issued a moratorium against foreclosure effective for 90 days.
In cases like this, troubled borrowers should take advantage of the extra time given to them. True, they need to pick up the pieces after suffering from Ike but they should also use this time to find a long-term solution to their mortgage woes.
Negotiating with lenders is usually the first option explored to address foreclosure fears. A loan modification agreement or repayment plan can be drafted if the homeowners are able to prove that they can still afford the mortgage.
If this does not work out, homeowners should probably consider selling the property. There are actually a lot of investors and homebuyers who prefer pre-foreclosures over foreclosures at auctions and bank foreclosed homes.
As a last resort, homeowners might want to consider a deed in lieu of foreclosure, a short sale or even a bankruptcy in order to avoid foreclosure.
For homeowners who are confused about what to do, there are foreclosure counselors who will offer their services for free. These foreclosure counselors can even act as mediators between the troubled homeowner and mortgage lender or servicer.
Nationwide, numerous housing advocacy groups have been organizing foreclosure prevention workshops and seminars in order to help these unfortunate homeowners.
