Many homeowners in Louisiana are struggling to keep up with their mortgage payments. If you’re one of them, you may be wondering if any help is available. Fortunately, several mortgage relief options are available to help you in this difficult time.
In this post, we’ll tell you everything you need to know about these programs. We’ll also provide contact information for organizations that can help you apply for assistance. So don’t despair – there is hope! Keep reading for more details.
Getting Started
The first step to getting mortgage relief is communicating with your lender and explaining your financial situation. Many lenders are willing to work with homeowners who are having difficulties making their monthly payments. If you’re not sure how to approach your lender or what to say, you can get free assistance from a HUD-approved housing counselor.
Types of Mortgage Relief Available
There are many mortgage relief options available in Louisiana. Some programs offer mortgage payment assistance, as well as those that offer lower interest rates and shorter mortgage terms.
Mortgage Modification
If your mortgage is currently in good standing, but you’re struggling to make the payments each month, you may be able to modify the terms of your loan. A mortgage modification involves working with your lender to negotiate a new repayment plan that better suits your current financial situation. In some cases, the lender may even agree to lower the interest rate on your loan.
Forbearance
If you’re facing temporary financial hardship, you may be able to negotiate a forbearance agreement with your lender. This type of arrangement allows you to make reduced or even no payments for a set period of time, giving you some breathing room to get back on your feet financially.
Principal Reduction
If you owe more than your home is currently worth, you may be able to negotiate a principal reduction with your lender. This means that the amount you owe on your loan would be reduced to match the current market value of your home.
Loan Refinancing
If you’re struggling to make your current mortgage payments, you may be able to refinance your loan for a lower interest rate. This can reduce your monthly payments and make staying current on your loan easier.
Pre-foreclosure Sale
Pre-foreclosure sale, also known as a short sale, occurs when you sell a property for less than the remaining amount you owe on your mortgage. The sale money is then used to pay off the debt.
Deed in Lieu of Foreclosure
If you’re unable to sell your home or reach a loan modification agreement with your lender, you may be able to deed the property back to the lender in lieu of foreclosure.
Mortgage Relief in Louisiana
The Louisiana Homeowner Assistance Fund was established to assist Louisiana homeowners struggling to pay their mortgages due to the financial impacts of COVID-19.
The Louisiana Office of Community Development administers the program, which is funded by the US Department of Treasury and provides $146.7 million in support to eligible homeowners to help prevent mortgage defaults, delinquencies, and foreclosures.
To determine if you are eligible or need advice, you can contact a HUD-approved housing counselor. They will be able to tell you if you qualify for the program and how much aid you may be eligible for.
If you are eligible to apply, they will also be able to provide you with the necessary application materials. Once you have completed the application, you must submit it for review.
The Benefits of Receiving Mortgage Relief Assistance
The benefits of receiving mortgage relief assistance include staying in your home and avoiding foreclosure. Additionally, it can help you catch up on missed mortgage payments and avoid damage to your credit score.
Foreclosure and Its Consequences
If you’re a homeowner facing foreclosure in Louisiana, it’s essential to understand the process and the consequences. Foreclosure is a legal process in which your lender can take back your home if you fail to make your mortgage payments. In Louisiana, foreclosure is a judicial process, which means that your lender must file a lawsuit in court and obtain a judgment against you before they can begin the foreclosure process.
Once your lender has obtained a judgment, they will notify you of their intent to foreclose on your home. At this point, you will have a certain amount of time to catch up on your payments and avoid foreclosure. If you cannot do so, your lender will begin the process of foreclosing on your home.
Overall, remember that foreclosure can severely impact your credit score, so you must avoid it whenever possible.
Steer Clear of Foreclosure with Favor Home Solutions’ Save My Credit Program
If you’re looking for a quick and easy alternative to avoid foreclosure, we can help! At Favor Home Solutions, our mission is to help you protect your credit and help you regain your peace of mind! Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to list your home for sale or get a foreclosure on your credit report. No fees, no gimmicks, and no obligations. Contact us today to get started!
