A reader asks, “Got fha loan for our home on Dec 2011. We have been doing fine until early 2014, we got a little behind. We have never let any payment be more than 30 days late, but we had some late payments to our bank on this loan. My wife is out of work after this month. Do we have any forbearance options?”
In situations like these it’s extremely important to being talking with the lender right away. FHA loans do have forbearance options for qualified borrowers, but many of a borrower’s options are most plentiful before the mortgage becomes delinquent. Working with your lender at the first sign of trouble with the mortgage loan is a very important move towards foreclosure avoidance.
According to the FHA official site:
“The Obama Administration has implemented a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. This page provides a summary of these various programs. Please continue reading in order to determine which program can best assist you.”
The page referenced in the paragraph above is located at http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure. Borrowers should know that there IS special help for unemployed FHA borrowers. According to the FHA official site these options may be available to borrowers who act quickly when they know the loan might be in trouble:
- 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 twelve months while you seek re-employment. Click Here for more information.
- Emergency Homeowners’ Loan Program (EHLP): Click Here for more information about EHLP assistance provided in your state.
- 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 twelve months, for FHA borrowers who qualify for the program. Click Here for more information.
Speak to your loan officer and call the FHA for more information on the programs mentioned above. Call them at 1-800 CALL FHA.
Do you have questions about FHA home loans? Ask us in the comments section.