Stop Home Foreclosure

In recent years the economy has nearly sucked the life out of most homeowners and the rate of foreclosures is rising at an incredible rate. Thankfully, there is now a new spark of hope called the Home Affordable Modification Program.

This modification program was implemented in March by President Obama and is meant to help Americans hang on to their primary home. The main concept of this program is to both reduce the homeowners monthly mortgage payment to a level that the lender can agree to but more importantly, a payment that the homeowner can fit into their budget.

This wonderful initiative has proven to be a major break for those homeowners who have come close to losing their house and the government has allowed thousands of dollars to help give both the consumer and the economy a big boost.

What homeowners are qualified?

It is a great time to apply for help in paying off your mortgage. After all, you may be able to dodge any worries of high mortgage payments, foreclosure and you won’t have all of those nasty marks on your credit history. The government has set forth several guidelines that can help you in determining if you are eligible for this initiative.

The main qualification is that you received your current mortgage prior to the beginning of this year.

It is vital that your home be both owner occupied and your primary residence or you will not qualify. To qualify, the property cannot be an investment and the house cannot be left sitting empty under the terms of this plan. The basics are that the house be your current residence. You will have to document proof of residency with some sort of bill with your name and address on it during the application process.

A factor that will come into play is that your income meets the goals outlined within the plan and your remaining mortgage balance must also fall into the guidelines that are set into place. Please consult with a modification specialist prior to qualifying.

During the application process, there will be several factors being evaluated with your income, expenses and assets being one of the biggest aspects. Be patient and take care to include everything you own that has any real value. Failure to disclose anything could lead to future difficulties and keep you from qualifying for this program or government assistance in later years.

If you are involved in a bankruptcy, you may still qualify. These kinds of suits are common during times of financial turmoil and may not exclude you from the program.

The program will be ending the end of December 2012, but all payments will continue for several months after the finish.

One of the most interesting facets of this program is that the government has decided to include a cash incentive for homeowners who apply early and able to make timely monthly mortgage payments.

The Home Affordable Modification Program was put into place to help homeowners and their lenders avoid foreclosure and excessive mortgage payments. It is just one way that the government is trying to help resolve some of the major economic issues we are facing.