Prevent foreclosure penalties were issued on Wednesday by mortgage giant Fannie Mae. They fear that homeowners will increasingly choose foreclosure and walk away, rather than try to seek other options.
It can be difficult to prevent foreclosure for many homeowners, and Fannie Mae know this full well. They seem to be saying, try every possible option first before accepting foreclosure as inevitable. Knowing how to stop foreclosure is possible, but obviously not easy.
The Fannie Mae warning shot to troubled homeowners says that those who choose housing foreclosure without any attempt at foreclosure prevention will be penalized by having to wait a full seven years at least before they will be considered again for a mortgage.
They go further than that even. They intend to sue homeowners to get back unpaid mortgages in the states where they are allowed to. The message seems clear – to prevent foreclosure penalties you need to try every possible option first before giving in to the inevitable.
Finding ways to prevent foreclosure is not really all that difficult. You will also avoid the big hit your credit score will take too. That could take longer to build back up, so it is worth doing whatever you can.
The Home Affordable Foreclosure Alternatives Program contains homeowner options for those who are trying to prevent foreclosure. The first step is to be willing to work with your lender if you find yourself unable to keep up payments and therefore face the possibility of losing your home.
The short sale program and the Deed-in-Lieu of Foreclosure program can help where homeowners surrender their property ownership voluntarily to the loan provider. These programs are particularly useful in cases where homeowners have been denied mortgage loan modification, have not ended a trial period successfully, or who have problems with their Making Home Affordable modification.
Plans that implement ways to prevent foreclosure from the Making Home Affordable Program should be discussed with mortgage lenders. Homeowners can also visit the Making Home Affordable website for further details on foreclosure prevention.
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