There is alot that goes into helping a delinquent borrower avoid foreclosure, and the foreclosure specialist retained to help a borrower is worth being paid to assist, but the prices he/she is charged by most foreclosure prevention companies is more often unfair and just outrageous. If you are in need of foreclosure help, you shouldn`t go broke paying someone to help you. This is why we suggest that you first do your research online and educate yourself about options available to you before hiring a "for profit" foreclosure prevention company to help. Fannie Mae sets up guidelines that most lenders follow to help borrowers who have become delinquent, and they offer home ownership counseling services to assist delinquent borrowers in managing debt. For the home-buyer education specialist in your area call 1-800-7FANNIE. For a nearby HUD approved counseling agency call 1-800-569-4287.

GRANTING RELIEF PROVISIONS

Fannie Mae makes available special relief provisions in an attempt to span periods of financial hardship that cannot be resolved by delinquency counseling, or with a simple cure.

When Is A Relief Provision Offered? When it is determined that a delinquency is the result of a temporary condition, such as illness, unexpected expenses, or military service, and there is a reasonable chance the borrower can bring the mortgage current. During the term of a Relief Provision the property will be subject to scheduled inspections.

Methods For Relief

Temporary Indulgence This is a grace period, usually 30 to 60 days that may be granted to bring the mortgage current.

Liquidating Plan This is an option which allows additional proceeds to be added to the the regular monthly payment after the hardship has passed and the borrower can resume regularly scheduled payments.

Special Forbearance This provides for the suspension of payments for a specified period of time, and usually for no longer than 18 months (for Fannie Mae) from the date of the first payment under this agreement.

Long Term Special Forbearance In certain situations Special Forbearance can be extended. (up to 24 months for Fannie Mae)

Military Indulgence A civilian borrower who later enters the military is entitled to Military Indulgence granted under the terms of the Soldiers` and Sailors` Civil Relief Act.