Grants to Help Stop Foreclosure
Loosing a property especially a home is a nightmare that most people would rather dream about than see it happen.
But the reality is that more people are losing their properties in unfortunate circumstances when they are unable to repay a loan or mortgage on which they had pledged the property as collateral.
Foreclosure is legal through professional process where a lender obtains a court order asking to terminate the borrower's right to redemption of property rights. Thus, if the borrower defaults on paying the amounts due to the lender, he will completely loose the right to ownership which is transferred to the lender. This especially occurs in mortgage transactions where the security is more often a home.
The government is concerned about this disturbing trend because it has a direct effect on the economy as it discourages investment.
It therefore offers grants to people whose homes have been foreclosed to save them from loosing their investments. The grants are offered for free to all successful applicants with nothing expected back from them; thus they get the money and keep the house.
The government forwards these grants indirectly through various organizations like HUD-assented counseling intermediaries, community-based organizations and state housing finance agencies. These organizations have the capacity to identify home owners who need the grants and they also have the necessary machinery for distribution of these grants.
Other privately-owned organization offer grants to persons facing foreclosure and have shown the need for assistance, willingness to receive counseling and mitigation. There is need for applicants to prove that they cannot be able to make the payments and are willing to improve on their financial prudence.
The HUD (Housing and Urban Development) department has put in place programs to help the government curb the foreclosure menace. Although they may not offer financial help, HUDs offer personalized counseling to help persons facing foreclosure.