Foreclosure Help in Iowa
When you face financial hardship, paying your mortgage can become increasingly difficult or even impossible and foreclosure can come knocking on your door. In this stressful and overwhelming period there are various programs and organizations that can help you through it to find the best solution for you.
If your financial situation has changed or might change soon it is possible for you to mitigate the looming difficulties before you face a month in which you are unable to make your mortgage payment. Open and honest communication with your bank/lender is key and in conjunction with them you can come up with a plan of action to avoid foreclosure and keep your home. You can temporarily modify your loan to pay less and then go back to normal payments once you are back on your feet. Forbearance could allow you to forego monthly payments for a determined amount of time. You will, however, have to agree to a payment plan to eventually make up for the missed payments. You can refinance your loan meaning you take out a new loan with lower payments or lower interest rates to pay off the old one. You have to meet more specific requirements to qualify for a refinanced loan and it could be accompanied by refinancing fees.
If it becomes clear that you will not be able to make mortgage payments for an extended period of time and you will not be able to keep your home you can still avoid a foreclosure with a deed in lieu of foreclosure or a short sale. This would mean that you either give your house back to your lender or sell it to a third party. These options will still have a negative impact on your credit score and you could also be held liable for any outstanding amount owed or for income tax.
Have a specific question about Avoiding Foreclosure in Iowa? Check out our Foreclosure FAQ’s section.
If you need assistance in navigating or preventing a foreclosure there are various options available to homeowners:
- Iowa Mortgage Help (IMH) (877 622 4866)
This is a free mortgage counseling resource you can contact for help and free legal representation. They can also put you into contact with the Iowa Mediation Service’s (IMS) counselors. In serious cases the IMS can act as an impartial third-party to negotiate the best solution between you and your lender.
- Iowa Foreclosure Helpline (888 718 0986)
The helpline is part of the nationwide Mortgage Relief Foreclosure Helpline and they will assist you in a free evaluation from a legal professional. You can also apply, at no cost to you, to receive legal representation from a firm licensed to practice in Iowa.
- Fannie Mae and Freddie Mac Flex Modification Program
The Federal Housing Finance Agency’s refinancing support programs (HAMP and FMERR) expired in 2018 and 2019 but a homeowner can still find support if Fannie Mae or Freddie Mac owns your loan. If you are eligible for the Flex Modification Program it will lower your monthly payment by about 20%.
Whether you are already in a stressful foreclosure process or you need assistance in avoiding such a situation, there are various options available to homeowners seeking help.