Foreclosure rescue in the United States is where a
mortgage
A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...
that is in arrears and where the lender is at the stage of
foreclosing on the loan agrees to stop the foreclosure in exchange for funds received through
loan modification or from a
government grant
A grant is a fund given by an end entity grant – often a public body, charitable foundation, or a specialised grant-making institution – to an individual or another entity (usually, a non-profit organisation, sometimes a business or a local ...
. It may also refer to funds that allow the homeowner to repurchase the property at or after foreclosure.
Legitimate foreclosure rescue can give the homeowner a realistic opportunity to regain their ability to get out of the situation and make regular timely payments again. However the fact that homeowners are often desperate at this stage has meant that foreclosure rescue has been the target for a scam known as the
foreclosure rescue scheme
A foreclosure rescue scheme is a scam that targets those whose house is facing potential foreclosure. The scheme preys on desperate homeowners whose mortgages are in default by offering to prevent the foreclosure. There are various ways in which fo ...
. Homeowners have been advised to confirm any scheme is legitimate before they engage in foreclosure rescue.
Foreclosure rescue came to prominence in 2007 as a result of the US
subprime mortgage crisis
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. It was triggered by a large decline in US home prices after the coll ...
which cause large numbers of mortgages to go into default. In response the
US government
The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a feder ...
unveiled a plan to provide foreclosure rescue to homeowners in 2009.
History
In 2009, President
Barack Obama
Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party (United States), Democratic Party, Obama was the first Af ...
unveiled a plan to provide foreclosure rescue to homeowners. This included the ability to modify loans, lower
interest
In finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is disti ...
rates, and help homeowners before they defaulted.
Checklist for legitimate foreclosure rescue
Key signs of legitimate foreclosure rescue include:
* No costs or fees until all services are rendered
** Home is saved *and* principal is reduced or modified
* No guarantee of saving home
* Recommends continuing communication with lender
* No false affiliation claims
** Only
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the Secretary of Housing and U ...
(HUD) approved non-profits can claim government affiliation
* Clear, written contracts
* Doesn't offer to accept your mortgage payment for your lender
See also
*
Occupy Homes
References
External links
*
HUD
Hud or HUD may refer to:
Entertainment
* Hud (1963 film), ''Hud'' (1963 film), a 1963 film starring Paul Newman
* Hud (1986 film), ''Hud'' (1986 film), a 1986 Norwegian film
* HUD (TV program), ''HUD'' (TV program), or ''Heads Up Daily'', a Canadi ...
br>
Stop Loan Modification Scams!Loan Scam Alert - Know It
995 Hope - Avoid It
Prevent Loan Scams - Report It
Rescue
Rescue comprises responsive operations that usually involve the saving of life, or the urgent treatment of injuries after an accident or a dangerous situation.
Tools used might include search and rescue dogs, mounted search and rescue ...
Subprime mortgage crisis
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