How LIHEAP Can Save Your Mortgage
If you’ve been hit with an emergency crisis situation that has made paying your utility bills difficult and placed a strain on your mortgage financing then a piece of legislation known as LIHEAP - Low Income Home Energy Assistance Program - could help you save your mortgage and keep your house.
Many families who have been through a natural disaster or other emergency have difficulties afterwards paying their bills, including utilities and the mortgage. The rising cost of energy coupled with the strain on the family’s budget caused by the disaster, with necessary repairs and medical bills to pay, can add stress where it isn’t welcome. That causes families to make hard decisions about which bills to pay and which ones to pay on time. The problem is, creditors are forgiving only for so long. You can’t sacrifice your mortgage to save the utilities and you can’t ditch the utilities to keep the mortgage. What kind of life would that be?
So LIHEAP is a federal program that offers assistance to low income families to pay their utility and energy bills. That frees up your income to pay for the mortgage. But what if things are still challenging?
You may be able to go to your lender and request a hardship modification. Some lenders will work with you and help you save your home because they realize that if they don’t they will just end up with your property on their books, a liability, when they can help you stay in the home and be an asset for them.
If you find yourself in such a hardship situation, speak with your attorney and see if there is a way to approach your mortgage company and request a loan modification. If worse comes to worse, use your ace in the hole - a forensic loan audit.
