In the wake of the recession, many homeowners in Arkansas found themselves struggling to keep up with their mortgage payments. If you’re one of them, you may be wondering what relief options are available to you.
This blog post will provide an overview of the main mortgage relief programs available in Arkansas so you can find the best solution for you and your family.
How Do I Get Started?
If you’re struggling to make your mortgage payments, the first step is to reach out to your mortgage lender or servicer. They may be able to offer you a forbearance agreement, which would temporarily lower or suspend your mortgage payments. If you’re not sure what to say or how to approach your lender, you can contact a HUD-approved housing counselor for free assistance.
What Are The Different Types of Mortgage Relief Available in Arkansas?
There are several different types of mortgage relief available in Arkansas. Depending on your situation, you may be eligible for a mortgage modification, principal reduction, or other types of assistance.
Mortgage Modification
A mortgage modification permanently changes the terms of your mortgage to make it more affordable.
Principal Reduction
Principal reduction lowers the amount you owe on your mortgage, which can make your payments more manageable.
Refinancing
Refinancing your mortgage can help you get a lower interest rate or change the terms of your loan.
Short Sale
A short sale allows you to sell your home for less than what you owe on your mortgage and walk away from the mortgage debt.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is when you transfer ownership of your home to your mortgage lender in exchange for them forgiving the mortgage debt.
What Are The Mortgage Relief Programs Available in Arkansas?
The main mortgage relief programs available in Arkansas are the Making Home Affordable program and the Hardest Hit Fund.
Making Home Affordable
The Making Home Affordable program offers mortgage modification and refinancing assistance to homeowners who are struggling to make their mortgage payments.
Some of their options include:
- Lowering monthly mortgage payments with Home Affordable Modification Program (HAMP)
- Lowering interest rates with Home Affordable Refinance Program (HARP)
- Checking eligibility for principal reduction with Principal Reduction Alternative SM (PRA)
- Getting help for those currently unemployed with Home Affordable Unemployment Program (UP)
- Reducing 2nd mortgage monthly payments with Second Lien Modification Program (2MP)
- Exploring foreclosure alternatives with Home Affordable Foreclosure Alternatives Program (HAFA)
Hardest Hit Fund
The Hardest Hit Fund (HHF) provides mortgage assistance to homeowners in certain states who have been hit hard by the recession. Arkansas is one of the states that participate in this program.
Their benefits may include:
- Mortgage payment assistance for unemployed or underemployed homeowners
- Principal reduction to help homeowners have more affordable mortgages
- Help for homeowners transitioning out of their homes and into cheaper places of residence
- Blight elimination and down payment help
How Do I Know If I’m Eligible for Mortgage Relief Assistance in Arkansas?
To be eligible for mortgage relief assistance in Arkansas, you must first meet specific criteria. For example, you must be a homeowner with a mortgage that is backed by the government (Fannie Mae or Freddie Mac). You must also be struggling to make your mortgage payments.
To learn more about the eligibility requirements for mortgage relief assistance in Arkansas, you can contact a HUD-approved housing counselor.
How Do I Apply for Mortgage Relief Assistance in Arkansas?
If you think you may be eligible for mortgage relief assistance in Arkansas, the first step is to reach out to your mortgage lender or servicer to explain your financial situation. You’ll also need to provide documentation of your income, assets, and debts.
If your mortgage lender or servicer offers you a mortgage modification or other types of assistance, they will send you a package of documents to sign. Make sure you read and understand all the documents before you sign them.
What Are The Benefits of Receiving Mortgage Relief Assistance in Arkansas?
There are several benefits of receiving mortgage relief assistance in Arkansas. For example, you may be able to lower your monthly mortgage payments, bring your mortgage current, or avoid foreclosure.
How Does Foreclosure Work and What Are The Consequences?
If you’re struggling to make your mortgage payments, knowing how foreclosure works in Arkansas is essential. If you’re unable to work out a payment plan with your mortgage lender or servicer, they may start the foreclosure process. This process can be long and stressful, and it will damage your credit score.
The consequences of foreclosure can be severe. You may be evicted from your home, and you’ll likely have a hard time getting approved for a mortgage in the future.
Favor Home Solutions Can Help You Avoid Foreclosure & Save Your Credit
At Favor Home Solutions, we want to help you during this difficult time. Our ‘Save My Credit’ Program takes over your mortgage payments so you can protect your credit from foreclosure. We’ll buy your home as-is so you don’t have to worry about repairs or spending any additional money. If you’d like to learn more about how we can help you, reach out to us today!