Hud Mortgage Help - How HUD is Helping Homeowners Avoid Foreclosure

If you are facing a foreclosure, you need to knowcould possibly be the 5 % of American home owners
what your options are. More importantly, you need towho do not have any equity in their current home,
know which option you can act upon the quickest towhich could act as a buffer against foreclosure for
bring your home out of foreclosure status and to endsome.
the foreclosure proceedings against you. Foreclosure isIn November this year, for the first time in over 25
a process of dealing with a homeowner who hasyears, the U.S. Department of Housing and Urban
defaulted on their payment. This means that even ifDevelopment issued mortgage reforms to help
you are just one payment behind, your lender canconsumers price the lowest cost mortgage and avoid
place a notice of default on your home and startpitfalls such as costly and harmful loan offers. Lenders,
foreclosure proceedings.as well as mortgage brokers, will be required to
Once foreclosure has begun, depending on what stateprovide consumers with what will be known as a
you live in, you may have only a few weeks beforeGood Faith Estimate (GFE). The GFE will disclose loan
the entire foreclosure process is complete. This meansterms and closing costs in standard detail.
you have to work at a fast pace but one that isHUD's methodology is modification to the stipulations
respective of making the right choices at the sameand guidelines regarding mortgages for many
time.homeowners so that foreclosure can be avoided. HUD
Lately all that has being in the media is bail outs forbelieves that the new regulation will save homeowners
Wall Street and even for all the banks. But in the midstas much as $700 when closing. Although the new
of all this the troubled homeowners are constantlystandardized GFE and HUD-1 will not be required until
wondering where is relief for them. Even thoughJanuary 1, 2010, it is good news.
statics are showing that 90% of home owners payBorrowers can expect loan originators to provide a
their mortgages on time, there are still so many peopleGFE no more than three days after the loan originator
looking for relief from mortgage foreclosure. It hasreceives the necessary information. This allows
been said that 20 % of home owners in the nationborrows to shop for the best loans and virtually
could be what is bringing the U.S. economy down or itguarantees they will find the best prices available.