Federal Loan Modification - A Chance to Save Your Home and Your Financial Future
Basically, if you had that lump sum of money, you would probably not be in default on your mortgage! If you can't pay your bills now, how could you afford to make payments on another loan to catch up your mortgage? President Obama has signed a bill that allocates 75 billion dollars to rescue homeowners in financial hardship.
It is called the Home Affordable Mortgage program, and it is part of the 2009 Stimulus Package.
One of the options available to homeowners is a reworked mortgage.
This program is not for those who are current on their loans, but those who are in default.
There are refinancing options available for those who are still current on their payment but do not have enough equity to refinance traditionally because of dropping home values.
These folks keep their loans, but get refinancing plans if they qualify.
This program is for folks like you who see no way out, and it has tools built in for the lender to help you turn things around and get another chance.
The late fees you have amassed can be forgiven, interest rates lowered, loan terms lengthened, and even principal forgiven! The goal is to completely modify your loan and get you a lower, more affordable house payment.
By avoiding foreclosure, you don't just save your home.
You are basically saving your financial future.
Foreclosure is a black mark on your credit report for the rest of your life.
It does not fade away after a set number of years like bankruptcy.
And, many folks who experience foreclosure also get propelled into bankruptcy through the foreclosure, and that is two black marks!