If you're in the midst of trying to figure out how to stop Alaska home foreclosure, you're not alone. The federal Making Home Affordable Program can help.
If you're in the midst of trying to figure out how to stop Alaska home foreclosure, you're not alone. You are one of many people in the country in danger of losing their homes due to situations like unemployment, underemployment and increased living expenses. Losing a home to foreclosure can be emotionally and financially devastating, but there are ways you can save your home.
First, contact your lender. Lenders have internal programs for modifications, refinancing and home loan forbearance. These programs may lower your interest rate, lower your mortgage principal or add payments to the end of your mortgage.
If your lender does not offer ways to stop Alaska home foreclosure, or if you want to know of other options available, contact a housing counselor with the U. S. Department of Housing and Urban Development (HUD). You may qualify for one of the many federal Making Home Affordable (MHA) Programs designed to stop Alaska home foreclosure.
Loan Modification
You may be able to stop Alaska home foreclosure through a loan modification under the Home Affordable Modification Program (HAMP). To qualify, you must be employed and able to afford a reduced mortgage payment. This program was recently expanded so you may be eligible for HAMP even if you did not qualify before or had a HAMP modification previously.
Home Affordable Refinance Program
You may also qualify for the federal Home Affordable Refinance Program (HARP) if your home is worth less than you owe on it. Typically, you won’t qualify for a traditional refinance if your home’s value has dropped, so this is may be your only refinancing option. You must be paying your mortgage as agreed to use HARP.
Has your home value dropped? Research your home's value here.
Principal Reduction Alternative Program
Another way to stop an Alaska home foreclosure is the Principal Reduction Alternative Program (PRA). Under this program, your lender reduces your mortgage principal, which lowers your mortgage payments for the life of your loan.
A MHA housing counselor can help you find other ways to stop an Alaska home foreclosure as well. If you need to exit your mortgage, you may sell your home in pre-foreclosure or request a Deed-in-Lieu of foreclosure (DIL) from your lender. MHA has programs to help you with both of these options too.
Short Sale or DIL
If you owe more than your home is worth and your lender agrees to accept a payoff for less than you owe, a short sale is an option for Alaska home foreclosure stoppage. The Home Affordable Foreclosure Alternatives (HAFA) Program helps you work with your lender to do a short sale or get a DIL. HAFA may also provide you with up to $3,000 in relocation money with either option.
If you get a DIL through HAFA, you give your home back to the lender and it must forgive the remaining loan balance. The DIL and short sale options are less damaging to your credit than a foreclosure.
If you are wondering, “How do I stop my Alaska home foreclosure?," research the federal programs and your lender’s internal options. A real estate agent who specializes in pre-foreclosure sales and short sales can help you if you choose to sell. Reply! can help you find an agent in your area.