For homeowners who have a mortgage through the Department of Housing and Urban Development (HUD) insured by the Federal Housing Administration (FHA), there might be further possibilities to obtain a deed in lieu of foreclosure to keep away from the worst consequences of losing a house. The prerequisites for this program and how homeowners can discover if they qualify are surprisingly simple in theory.
All homeowners who have their loan insured by the FHA are able to contact HUD at the first sign of falling behind in payments. HUD gives various services to borrowers who are in danger of defaulting on a mortgage, for example free counseling and assistance with negotiating with a bank for a short sale.
