What about Federal Bailout Programs?
The Obama plans to aid homeowners
President Obama’s Homeowner Affordability and Stability Plan has now replaced earlier plans and is the way that distressed homeowners might be able to get relief. Below are several links to documents and charts that might help you better understand if and how this plan can help you. At least read through the summaries presented below before you continue on to considering a short sale. A short sale is only the answer if you are already sliding into foreclosure, with no way to save the house. It’s always better if you can find a way to save the house that works for you. You should exhaust all alternative to either foreclosure or a short sale.
The U.S. Department of Treasury Information on the plan -
Executive Summary (PDF 47K)
Fact Sheet (PDF 65K)
Questions and Answers (PDF 55K)
Modification Program Guidelines (PDF 37K)
The National Association of Realtors (NAR) information on the plan -
NAR Summery of the Plan (PDF 100K)
Are there non-government workout programs, too?
Your banks workout programs - Many of the largest banks and mortgage lenders have now realized that they are better off renegotiating your mortgage into one that you can afford than they will be if they foreclose on the property. So, contact your lender first to see if they have a workout program and if you qualify.
What will you need to have ready when you ask your bank for a workout or change to your mortgage? Click here for a list of things to get ready for either a workout request or to negotiate a short sale.