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- In Virginia, HUD-approved counseling agencies provide services to help you if you're struggling to keep your home. Counselors offer you help no matter which stage you're at in the foreclosure process. Before falling behind, budgeting or refinancing may prevent foreclosure. If you're already delinquent, the counselor can negotiate with the lender or assist you with qualifying for a loan modification. Nonprofit counseling organizations offer counseling at little or no cost. HUD doesn't allow counselors to charge FHA loan borrowers for their services.
- The federal Making Home Affordable Program allows you to refinance or modify your current loan. To refinance through this program, the loan must be guaranteed by Fannie Mae or Freddie Mac. Virginia homeowners can't be more than 30 days late on a mortgage payment. Unlike refinancing through the bank, the Making Home Affordable Program doesn't require the home to appraise at the price you originally paid. If you don't meet the criteria to refinance, a loan modification may permanently lower your payments. The modification adjusts one or more terms, including the interest rate or length of the loan. The mortgage must have been acquired prior to January 1, 2009, and must be for your primary residence. Contact your lender to apply. If you need help locating the lender, a list is provided on the Making Home Affordable website.
- If you're unemployed or suffer a hardship that reduces your monthly income, you may benefit from assistance through the Emergency Homeowners' Loan Program. This HUD program is designed to provide relief to homeowners in states that don't receive aid through the Hardest Hit Fund. If approved, you receive an interest-free loan of up to $50,000 to cover 24 months of mortgage payments or to pay your delinquent balance to bring the loan current and eligible for reinstatement. Once your income is restored to at least 85 percent, you're transitioned out of the program. Each year for a period of five years, 20 percent of the loan balance is forgiven --- as long as you make your mortgage payments on time.
- After exhausting all other options, exiting gracefully may be a last resort. Through the Home Affordable Foreclosure Alternatives Program, you can get paid to leave the property. If you successfully complete a short sale or deed in lieu of foreclosure, you can receive $3,000 in relocation funds. A short sale is when the lender agrees to allow you to sell the home for less than the remaining balance owed on the mortgage. If the home is on the market for 90 days without selling, the lender may allow you to voluntarily give back the property through a deed in lieu of foreclosure. Both methods can help you avoid a deficiency judgement. In Virginia, if the home is foreclosed and sold by the bank, the lender can sue you for the difference between the sale price and balance remaining on the loan. Carefully read over all documents to ensure your lender waives the right to a deficiency judgment after the sale or transfer of ownership.
Foreclosure Prevention Counseling
Making Home Affordable Program
Emergency Homeowners' Loan Program
Home Affordable Foreclosure Alternatives Program
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