Several Pennsylvania homeowners have fallen behind on their mortgage payments due to economic challenges in recent years. If you feel identified, it’s likely you’re wondering how you can get help during this difficult time. Thankfully, there are a number of mortgage relief options available to you.
This post will provide you with all the information you need about these Pennsylvania programs. We will also provide you with contacts for organizations that can assist you in applying for assistance. It is important to remember that there is hope! Read on to learn more.
Talking to your lender about your financial situation is the best way to take a step toward getting mortgage relief. In many cases, lenders are willing to work with homeowners who have difficulty making their monthly payments. A HUD-approved housing counselor can provide you with helpful advice if you’re uncertain about what to say to your lender.
Types of Mortgage Relief Available
In Pennsylvania, there are many options available for mortgage relief. Several programs can help you make your mortgage payments, lower interest rates, and modify loan terms.
- Mortgage Modification: If you have problems making your mortgage payments, you may qualify for a loan modification. When you modify your mortgage, your lender will negotiate a new payment plan that is suited to your current financial situation. Some cases may even allow for a lower interest rate to be negotiated.
- Forbearance: A forbearance program may be available to you in case of temporary financial difficulty. Regaining your financial stability may be possible through reduced or no payments for a period of time.
- Principal Reduction: If your home is worth less than your current mortgage balance, you may be able to lower your principal. As a result, your loan balance would be reduced to reflect the market value of your home.
- Loan Refinancing: It may be possible to refinance at a lower interest rate in the event that you are having difficulty making your mortgage payments. You may be able to lower your monthly payments if you qualify.
- Short Sale: Short sales occur when a house is sold below its mortgage balance. After the sale, the sale proceeds are used to repay the debt.
- Deed in Lieu of Foreclosure: Deeding your home back to the lender in lieu of foreclosure is an option if you are unable to sell or modify your loan.
Mortgage Relief Programs in Pennsylvania
Homeowner Assistance Fund
The Pennsylvania Homeowner Assistance Fund Program provides financial assistance to Pennsylvania homeowners facing financial hardship due to the COVID-19 pandemic after January 21, 2020.
How it Works
The program will provide homeowners with financial assistance for the qualified mortgage and housing-related expenses to avoid foreclosure, default, and displacement. Homeowners may qualify for funding up to $30,000 per household.
The program is only available to those who experienced financial hardship, loss of income, or increased expenses due to COVID-19 after January 21, 2020.
You must also meet the following criteria:
- Be a homeowner with primary residence in Pennsylvania
- Be behind on mortgage payments or housing-related expenses for at least 30 days.
- Have an income that is equal to or less than 150% of the area’s median income.
- Have the first mortgage you take out be a conforming loan that meets the federal lending limits for the year it was taken out.
- Are not receiving the same assistance from another federal, state, local, nonprofit, or tribal agency for mortgage payments, mortgage reinstatements, property charges, and/or utility payments.
How to Apply
Foreclosure and Its Consequences
Foreclosures in Pennsylvania are complex processes that should be understood by homeowners facing the process. The loss of your home could occur if you fail to repay your mortgage for more than 120 days.
In order to maintain a good credit score, you should avoid foreclosures at all costs. Furthermore, foreclosures can devastate communities, and crime may increase if property values decline as criminals target vacant homes.
Avoid Foreclosure in Pennsylvania with Favor Home Solutions’ Save My Credit Program
If you’re about to lose your house to foreclosure and don’t know what else to do, we’re here for you! At Favor Home Solutions, we aim to restore your peace of mind and protect your credit. With our ‘Save My Credit’ Program, we’ll take over your mortgage payments, so you don’t have to list your home for sale or worry about a foreclosure mark on your credit report.
You might even be able to pocket some money at the end: no fees, no gimmicks, and no obligations. Contact us today to get started!