Foreclosure help

Government Assistance for Foreclosure

When people are in foreclosure, they look to the government for foreclosure assistance. With more and more people facing foreclosure, the government is coming up with solutions and aids to help people avoid and get out of foreclosure. There are a few government assistance for foreclosure programs as well as government funds and mortgage assistance grants to help people avoid foreclosure. The biggest problem is that not everyone is eligible for government assistance for foreclosure. If you are a victim of natural disasters or a military personnel, then you may be eligible for the government assistance for foreclosure.

Government helps victims of natural disaster areas facing foreclosures

The government is helping victims of natural disaster areas who are facing foreclosure. The question is, are you considered a victim of the natural disasters that are eligible for the government help.

If you live or work in an area declared a disaster by the President, are under a home foreclosure crisis, you may be able to find state government solutions to your problem if your home is damaged or your income is reduced by:

  • the hurricane,
  • tornado,
  • flood,
  • wildfire, or
  • other natural or
  • man-made event
What are the government assistance for foreclosure available to natural disaster victims?

In this case, your lender will provide disaster relief such as extending the grace periods of your mortgage payments and postpone foreclosure actions.

If you live in a zip code published by the Federal Emergency Management Agency or FEMA as being a federal disaster area, you will not be charged late fees during the grace period. The lender will not take any actions against you such as reporting your delinquent account to the credit agencies or initiating the foreclosure process.

Government assistance for foreclosure available to military personnals

Another group of people whom the government helps in case of foreclosure is the military personnels and their spouses. Unlike the help the victims of natural disasters get, military personnels or their spouses on active military duty may be eligible for paying lower interest rates on their house mortgage payments. The Servicemembers Civil Relief Act of 2003 (formerly the Soldiers' and Sailors' Civil Relief Act of 1940) outlines rights of a military personnel homeowners, reservists, and guardsmen about mortgage payment relief and protection from foreclosure.

While the government has many programs in place to help homeowners in crisis facing foreclosure, not everyone can benefit and for many homeowners the aid from the government comes too late to help the avoid foreclosure.