If you need to exit a mortgage that is no longer affordable, state and federal programs provide many options.

Numerous reasons exist as to why so many people are facing home foreclosure. If you are one of the many in this situation, it is possible to stop Virginia home foreclosure with state programs available to assist you. While the president has recently made available to homeowners in distress several different Virginia State programs to stop home foreclosure, it is important to check with your individual mortgage lender to find out exactly which state assistance programs they honor. To learn more about some of the most common Virginia programs available, read on.

Home Affordable Refinance Program (HARP)

Stop-Virginia-home-foreclosure-state-programs-that-can-assist-you-3If the value of your home has declined, you may have a difficult time getting your lender to agree to refinance your house to make payments easier to manage. However, you may qualify to refinance through the Home Affordable Refinance Program ( HARP ). If you have ever refinanced through this program, you may not be able to qualify for it again. In most cases, you must be up to date with your mortgage payments at the time of application. The program can help you lower your risk of home foreclosure by reducing your interest rate sufficiently to make your payments more affordable; the recalculated rate is based on your income and monthly expenses.

Home Affordable Modification Program (HAMP)

You can apply for the Home Affordable Modification Program ( HAMP ) to have your loan modified in a way that will lower your monthly payment enough to make it more affordable for you. You will first have a trial period to ensure that you can uphold the new terms of the loan after getting the HAMP modification. Once the trial period is up, the new terms become permanent.

Principal Reduction Alternative (PRA)

Stop-Virginia-home-foreclosure-state-programs-that-can-assist-you-2The Principal Reduction Alternative (PRA) program is a state program that was designed to help homeowners in distress by reducing the amount of principal owed on the loan. Common requirements when it comes to qualifying for Virginia home foreclosure state programs like this one include:

  • You must occupy the home as your primary residency.
  • The home must be worth less than what you have left to pay on your loan.
  • Your loan payment exceeds 31 percent of your monthly income.
  • You must prove hardship

These are just a few of the state programs that can help you avoid foreclosure. You can also sell your home in a pre-foreclosure sale or short sale to stop Virginia home foreclosure. If you need a real estate agent who specializes in pre-foreclosure sales, RealtyNow can connect you with agents in your area.