The mortgage crisis has made many people homeless and has damaged the economy. But there is help available to those who are at risk of losing their homes.
Mortgage Crisis
The mortgage crisis is the result of homeowners defaulting on their mortgages in very high numbers and thus losing their homes.
Subprime Loans
Subprime loans have less favorable terms for homeowners, including higher interest rates, extra fees and penalties for early repayment. People with these mortgages can find it difficult to make their payments, resulting in foreclosure.
Lower Property Values
Many homes that were purchased during the property boom have lost value in recent years. This makes it difficult, if not impossible for homeowners to refinance under more favorable terms.
Contact Your Lender
The U.S. Department of Housing and Urban (HUD) development encourages homeowners who are having difficulty to contact their lender immediately to work out more favorable terms or a payment plan.
Avoid Scams
According to an article in Kiplingers, scam artists claiming to "help" troubled homeowners may trick homeowners into signing over the title of their home or will charge money but fail to perform any services for the homeowner.
Free Counseling
Homeowners can get free housing counseling from HUD-approved agencies. These counselors can help homeowners understand their rights and responsibilities and help them to save their homes from foreclosure.
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