There are a number of different foreclosure loans to help you avoid foreclosure.

Foreclosure-loans-know-your-options-2If you are struggling to make your mortgage payments and face foreclosure, there are a number of different foreclosure loans to help you avoid foreclosure. You may be able to get one of these loans through your bank or through a state or federal program.

Fewer foreclosures seem to be happening every month. During the last quarter of 2012 for example, only 156,773 new foreclosures were initiated. This was the lowest since the first quarter of 2008. One of the reasons that the number of foreclosures is falling is because banks are trying to help their clients avoid foreclosure. Using foreclosure loans or refinancing loans, banks can modify their clients' existing debt repayments. These modifications may allow you to pay a lower monthly amount and in some cases, they may even lower the total amount of money that you owe on your home loan.

Unfortunately, you may have trouble negotiating foreclosure loans with your banks. If you are having trouble talking with your bank, you may want to contact a state or local organization to help you mediate that conversation. The Department of Housing and Urban Development (HUD) or one of its local offices may also be able to help you.

HUD also offers the following programs that may help you to avoid foreclosure:

  • The Making Home Affordable Program (MHA)
  • Home Affordable Modification Program (HAMP)
  • Principal Reduction Alternative (PRA)
  • The Second Lien Modification Program (2MP)
  • Home Affordable Refinance Program (HARP)

These programs are all designed to help you avoid foreclosure, in different ways. Under the MHA Program, you may be able to lower your monthly mortgage payments. With HAMP, you may be able to lower your monthly payments by 40 percent or more. If you qualify for the PRA program, you may be able to get foreclosure loans that actually lower the amount you owe on your principal. The 2MP is designed to help people who are struggling to pay a second mortgage and the HARP is perfect if you are not behind on your mortgage payments, but you need to refinance anyway.

Foreclosure-loans-know-your-options-3There are also programs to help you if you are unemployed or if you need to exit your mortgage. One of the options to exit your mortgage is the HUD short sale program. If you owe more on your home than it is worth because the market value dropped significantly, you can apply for the HUD short sale program. If your lender participates in the program, you can sell your home for less than you owe and not be responsible for the deficiency.

According to the Office of the Comptroller of the Currency (OCC), homeowners who get help through one of these programs are able to lower their monthly mortgage payments by an average of $389. This represents a 25 percent average saving. If you need a refinance loans or foreclosure loan, federal programs may be able to help. If you need to talk to a real estate agent who specializes in short sales, go to RealtyNow.