The recent bailout of wall street and banks has many trying to figure out exactly what it means for homeowners who may be facing foreclosure. While I don’t know the specifics about what the bailout means for individual homeowners, there are a few banks who have published their plans for assisting homeowners who are behind in their mortgage payments.
In the Indianapolis area, there have been 387 bank owned homes listed on our local listing service since October 1st. That’s a lot of families displaced due to foreclosure. My first bit of advice for homeowners who are behind is to keep in touch with their lender. Now, there are a couple of lenders who are reaching out to homeowners with programs designed to keep them in their homes.
The now defunct, IndyMac, has their program in place and Bank of America, who now owns Countrywide, has announced their plan for homeowners, which will begin in December.
The Hope for Homeowners program also went into effect on October 1st. It remains to be seen whether other banks will follow the steps of IndyMac and BofA or participate in the Hope for Homeowners plan. If you’re an Indianapolis homeowner who is facing foreclosure, please contact your bank first. There are some, who due to job loss, illness or other life changing circumstances who will not be able to take advantage of these bank programs. It is still best to contact the bank or mortgage company and see what your options are.