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Alternatives to Stop a HUD VA Foreclosure
By Vic Hurlstorm | May 18, 2009
As with all foreclosures, a HUD VA foreclosure is an unfortunate occurence. Of all the tragedies that can occur, surely the threat of losing your home due to payments that you you are behind on, is one of the worse nightmares. There are many types of mortgages available to you including VA loans (for ex armed services personnel), traditional mortgages, HUD loans, and FHA loans.
There are basically only subtle differences in a foreclosure when you compare a HUD or VA loan to a traditional loan. VA mortgage loans are financed by banks like traditional mortgages but the VA guarantees these loans. If the veteran homeowner doesn’t make payments and loses the home, the VA then becomes responsible for the payments. That means the actual foreclosure goes through the VA instead of the bank.
HUD homes are properties that house families in one to four units. If the FHA has foreclosed on a house, it is offered for sale as a HUD property. Homes that are owned by HUD can be sold to anyone, this will include the VA, veterans and those that have VA loans.
At the time when a HUD or VA house goes through a foreclosure process, the HUD or VA owns the home and not the lending society. No matter what kind of mortgage was taken out and how it happens, foreclosure is a very sad thing for anyone to have to go through
Follow these helpful tips to reduce your chances of suffering through a HUD VA foreclosure
1. You should tackle your financial problems head on and deal with them instead of ignoring them. There is a lot you can do to save your home if you are only behind a month or two on your payments As almost immediately as you understand you have a problem, talk to your lender. If they call you concerning your late expenditure, talk to them and see what can be worked out to keep away from a HUD or VA foreclosure.
2. Be sure you know exactly what rights you have. You should see what the state laws are and what your rights with regard to your mortgage are so you know the time frame for a foreclosure process.
3. The bills which are the most urgent should be paid initially. The two bills you are supposed to pay first no matter what are your mortgage and your health cover. This may mean that you have to reduce or eliminate other expenses like your Internet, cable television and your telephone. Reducing these expenses will ensure that your more critical invoices are paid in a timely fashion.
4. Talk to an HUD housing specialist about your problem. There are counselors who work for the Department of Housing and Urban Development who will be happy to advise you for free. They are very experienced with VA HUD foreclosure topics They will help you sort through your finances, develop a budget, and possibly be able to help you work out a compromise with your mortgage company in order to keep your home out of foreclosure. For VA loans, the same type of help is available through Veterans Affairs and you may even be able to get financial aid to avoid foreclosure.
5. Sell any assets your are able to in order to raise funds. Belongings like a spare motor vehicle, jewels, and insurance policy you can cash in and other possessions can be sold to help raise cash to pay your mortgage and keep your home.
6. Those companies that claim they are able to cease your foreclosure and rescue your home should not be dealt with. Almost all of these companies are only out to take your money from you and offer you no real help when it comes to saving your home. You are supposed to use the cash you would disburse them to pay your loan instead. Do not waste your time on such organizations, should they phone to claim that they can protect your house from a HUD VA foreclosure.
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