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US Government Programs to Avoid Foreclosure

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By : Sonia Smith    99 or more times read
The government of the United States continues to pass legislations to make it easier for every homeowner around the country to get debt and credit counseling services, money grants and financial assistance. Generally, assistance is a part of a program that allows a qualified homeowner who is facing foreclosure a chance to prevent foreclosure on his or her home.

A lot of homeowners have used these programs to retain their homes. This program was announced by President Barrack Obama in February 2009 during the unveiling of the Homeowner Affordability and Stability Plan. The program offers $75 billion assistance to those homeowners who are facing a foreclosure.

These programs are designed to achieve two goals—help homeowners prevent home foreclosure for this year and fore years to come and help present homeowners to be able to refinance their mortgages to make a lesser monthly payment each month with the use of a sixed-rate loan. If you qualify for any of the programs, how you are going to pay your current program will determine the program which you can use. The first option is for individuals who are unable to keep current on their monthly payments and second, for those who are current on their monthly mortgage payments.

Homeowners and lenders both have motivation to take part of these government modification programs. You may be entitled to a decrease in your principal balance if you make your monthly payments on time. Furthermore, you could cut $5,000 from the amount you owe on your home through a 5-year modification period. Lenders could be qualified for incentive payments for every successful loan modification.

To get qualified, the amount of money you owe on your property without the interest should be lower than $729,750. Find out from your mortgage lender if they participate in these programs. You will be eligible for a mortgage refinance if your present loan is owned by Fannie Mae or Freddie Mac. In case the value of your home has plunged too low, there is possibility that you will not get qualified for mortgage assistance programs. Nonetheless, you should not be more than 5 percent on your mortgage payments to qualify.

Most homeowners who are facing foreclosure simply have no idea on what to do. Fortunately, today you can finally find an answer to your foreclosure woes through these programs by the government. It is comforting to know that there is indeed something you can do to avoid foreclosure from happening and continue living in your home.

Therefore, if you are facing foreclosure, make the right decision now and stop it and its devastating effects on both you and your family. It is more than ever important to save your home. These government programs have provided a lot of families an opportunity to get back on track, avoid the negative effects of foreclosure and save their homes.

Remember that you have done all you can and exhausted all means to save your home, but some situations make it harder for you to do so. Do not allow lenders to take your home from you with a possible solution through these federal programs.
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