For guidance on minimising the risk of Foreclosure-assistance to prevent Foreclosures

5. February 2011, James Clausen

Preventing Foreclosure-loan alternatives-Mortgae Home , Brendel Imae

Due to plummeting home values and other financial difficulties as a result of the economic downturn, the Federal Government to create programs that can help to stem the foreclosure proceeding. These programs are designed to work with the support of the State and the mortgage lender concessions. This article examines some of these government programs designed to help prevent foreclosure homeowner.

To help to stem the foreclosure due to financial difficulties, the Obama administration created the wave making home affordable plan known. This plan consists of four different programs today is designed to help struggling homeowners. Four plans in accordance with the rules of the program are

• Home affordable modification program
• Home affordable Refinance program
• The second Lien modification program
• Home affordable Foreclosure alternatives program

Home affordable modification program

Home affordable modification program, or HAMP mortgage modification program. HAMP is intended for individuals who are facing financial difficulties and who are struggling with their current mortgage payment. The application process as part of a hardship, it is recorded in the program. Most of the difficulties of excessive debt is eligible, the reduced revenue, increased costs or a lack of cash reserves.

Under the homeowner mortgage home loan may be modified on the server to reduce the rate of 2% of the loan for 30 years. HAMP to qualify for the homeowner (s) of the monthly gross income must be greater than 31 percent of modified total monthly loans (including real estate tax and insurance). Mortgage-the server is authorized to reduce the principle.

Home affordable Refinance program

Lower your monthly mortgage payment in the second alternative is the home affordable refinance program or HARP. Unlike the HAMP, mortgage refinance, the HARP is a program that uses the current interest rates. The program can help to reduce the monthly payments, if the current rate is lower than the initial borrowing rate, the Home. It can also help to reduce the monthly payments for some of the principal amount has been paid down to the original loan.

Another great advantage is, if the original loan, the interest rate is variable and is ready to return to a higher rate. HARP can be fixed under the speed for the duration of the loan. This program under the auspices of the mortgage servicer should be dealt with without the fees for the homeowner refinance.

The second Lien modification program

If the homeowner is struggling, the second, they can be obtained at a reduced rate of interest at a rate equal to the second Lien modification program or 2MP. You can take advantage of the first lien 2MP, first of all, you can change the Home affordable modification program. Under the mortgage servicer will reduce the amount of 2MP 2% interest and principal of the loan and interest only mortgage, one of the "% 1".

Home affordable Foreclosure alternatives program

If a homeowner believes that they can no longer afford to make monthly mortgage payments, even with the Home affordable program is a short sale or deed-in-lieu to the closure of the closure could be options. Short sale home sold for less than what is owed on the mortgage. Deed-in-lieu is when property is transferred to the mortgage servicer before their ' property.

Home affordable Foreclosure alternatives program, or HAFA short sale or makes using a deed-in-lieu for the homeowner to make it easier for the closure. HAFA program may also cause the homeowner $ 3 000 dollars to assist affordable housing would relocate.

If the homeowner is a veteran, they might be able to get a VA refinance can help lower monthly payments option. For more information about the Obama administrations, as well as making home affordable homeowner can contact HOPE Hotline, 888-995-4673.

Source:

Making Home Affordable, the site uses 5. February 2011 http://www.makinghomeaffordable.gov/about.html

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