If you are having trouble making your loan payments, there are both public and private charities that help with
- Government assistance, primarily through HUD
- Private organizations, the largest are the United Way and Catholic Charities
A variety of programs are available. But the place to start is with an organization that offers counseling to help you get back on your feet. In addition to these places, you can go to your local church. Because they open their doors to people who need all kinds of help.
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Private Charities that Help with Mortgage Issues
There are many private and faith-based charities that help with mortgage problems. But where should you begin? Three large organizations that have resources in almost every community are:
- Catholic Charities
- The Salvation Army
- The United Way
These organizations have resources to help people in crisis. And they may be able to help you.
Catholic Charities
Catholic charities will help with mortgage payments. In fact, they will assist with anyone suffering from a crisis.
- An unpaid loan qualifies under the Emergency Assistance Program.
- Some locations also have specific programs designed to provide help.
Catholic Charities
Salvation
The Salvation Army offers help for basic needs. So, they may or may not be able to help with your loan.
- To qualify you must receive a foreclosure notice
- You must show that you have enough
income to continue payments - They will mail a check for that month’s payment directly to your lender
The Salvation Army is a good place to start seeking help. Because they are truly committed to helping people. If they can help, they will. And if they cannot, they will help you find someone who can.1
United Way
The United Way does not help with your mortgage directly. It has a hotline that will connect you with local assistance programs. They will:
- Help you find a foreclosure prevention counselor.
- Refer you to local assistance programs
They may also offer emergency financial assistance if you are in foreclosure and in danger of losing your home. If you need assistance with your payments this is a good place to go seek help.1
Government Programs
The government offers many programs to help you if you fall behind on your mortgage. have programs for single mothers, people with disabilities, the unemployed, and seniors. In some cases, they even provide grants.
Single Moms
Different government agencies offer mortgage help for single mothers. These programs include:
- The Home Affordable Modification Program (HAMP)
- Principal Reduction Alternative (PRA)
- Second Lien Modification Program (2MP)
- Home Affordable Refinance Program (HARP)
In addition to these government programs, you should find local charities like churches. In addition, reach out to an organization like the Salvation Army, Catholic Charities, or the United Way.2
Disabled
Are you disabled? There are programs that will help you with your loan, and the place to start is a Housing and Urban Development (HUD) approved agency. The reason you should start with HUD is they will give you free or low-cost counseling and help you enroll in a program to help.
- Federal government-backed programs that can modify your loan payment
- FHA Short Refinance programs can help if you owe more than the house is worth
- Private banks offer principal reduction, loan modifications, deed in lieu of foreclosure, short sales, and other programs.
HUD has vast resources, and these are some examples of the resources they have access to. If you are disabled and behind on your payments, you should contact them immediately.3
Unemployed
You can find help if you are unemployed. The government has funds set aside for loan payment assistance. In addition to public resources, your bank and other local charities may also be able to help.
- 18 states and Washington DC have Hardest Hit Funds that offer loan payment assistance.
- Your lender probably has a forbearance program where they will suspend payments for a time.
- Fannie Mae/Freddie Mac and other programs offer loan modification programs.
The place to start is with HUD or with a private charity such as the United Way or Catholic Charities. These organizations have programs and counseling specifically for people with mortgage problems.4
Seniors
If you are a senior needing mortgage help, there are also government programs specifically designed to help you. HUD may be able to help, and it is the first place you should call.
- The Streamlined Modification Initiative helps you permanently modify your loan.
- HARP can help you refinance if you owe more than your home is worth.
- The FHA short refinance program helps if you are not behind on your payments. But you do owe more than your home is worth.
- The Home Affordable Foreclosure alternatives (HAFA) program
helps you short sale your home and relocate.
In addition to these government programs, you may find local, private charities in your area that can help.
Mortgage Payment Grants
Mortgage payment grants are awards that you don’t have to repay. The application process is detailed and complicated, but there are many programs available.
- Habitat for humanity offers the Mortgage foreclosure prevention program.
- Local agencies offer single mothers housing grants as low-income buyers or rural area buyers.
- The American Dream Down Payment for Minorities offers down payment assistance for low-income minority families.
The best thing to do if you are looking for a grant is to contact HUD. Other charities, such as the United Way, may also be able to help.5
