• Recent News
  • An Americans Guide to the 2013 Government Mortgage Assistance Payments and Help Programs


     If you are Late on your mortgage, there may be a program that can help you keep your home. See if you qualify for the U.S. Loan Modification Plan now, If you are late on your mortgage please Fill out the Form Below.

    The recession has caused the government to pass a lot of spending bills in this year of 2010. The intent of the bills is to help people who own homes avoid foreclosure. If you’re a homeowner, you should know about the government programs that will assist you with your mortgage.

    What state are you in? Please select an item.

    Behind on your mortgage payments?: Please select an item.

    Estimated mortgage balance owed? Please select an item.

    Who is your lender? A value is required.

    First Name: A value is required.

    Last Name: A value is required.

    Primary Phone Number: A value is required.

    Secondary Phone Number:

    Your Email Address: A value is required.



    The government programs were announced in February of 2009 and are part of the Homeowner Affordability and Stability Plan. This plan is complicated and can be difficult to understand. The reason is because there has been a lot of press conference, there are many programs that sound the same, and there are a lot of cryptic acronyms.

    To help you make sense of it all, we have put together this helpful article which will explain the mortgage assistance programs. You can see if you’re eligible for these programs by clicking on the links in this articl. We’ll begin by providing you some background information.


    Screenshot_052416_095722_AMRefinancing is a great way to lower your interest rates and to pay the mortgage on your house quickly. It is paying off the previous loan with a new one with better interest rates and installments. You can choose the best plan for yourself when you are going for refinancing. Wells Fargo offers great refinancing deals for its customers. The company knows how to keep their customers happy as they are offering two more refinancing programs
    for their already existing customers.

    Streamlined Refinance

    If you are worried about the high-interest rates and too many installments of your loan, then all you have to do is enroll for the streamlined refinance program offered by Wells Fargo. This program gives better interest rates, the easy number of installments and easier application process.


    The benefits of streamlined refinancing are endless. You can avoid the entire appraisal and the application fee. There are no closing costs, and the loan pricing is locked once you’ve submitted the complete application, there can be no changes to it.

    The best thing about streamlined refinancing is that you don’t have t0o go through all the paperwork that you usually have to fill out for other kinds of refinancing. There are low upfront costs, and the process is quite fast and easy.

    Points to Be Noted

    There are a few things that you might look into before signing up for the streamlined refinancing. Firstly, this offer is only for already existing Wells Fargo customers, not new ones. Secondly, this refinancing does not allow a cash-out refinance so you will have to take it into consideration too. And lastly, this refinancing deal might give you a higher interest rate but a low overall cost, so it’s better if you consult your mortgage consultant before signing up for this offer.

    Wells Fargo & Home Affordable Refinance Program (HARP)

    This loan is best for people who owe more than what their home actually costs and are in trouble with their debts. You can avail this program quite easily by filling out a small number of documents and signing them in the presence of witnesses. It is a limited time program, and it expires at the end of this year on 31 December 2016.

    Eligibility Criteria

    For acquiring a HARP loan, you have to be eligible for it. This means that you must be an existing customer of Wells Fargo. You should be current on your mortgage payments and it must be owned by Fannie Mae or Freddie Mac, originated before June 2009. These are all the requirements your mortgage has to fulfill to be eligible for this HARP program.

    Wells Fargo 3-Step No Cost Refinancing Program

    This is another great initiative from Wells Fargo in which they offer their already existing customers a deal including lower interest rates without any hidden fees or charges. Many people think the offer is too good to be true, but it actually exists. This plan offers 1% decrease in your interest rate and that too without any cost for appraisal, applications, and closing.

    This 1% decrease in interest rate can sum up to a huge amount at the end of a mortgage long period. This is why this offer is only valid for refinancing of a minimum of 15 years. If you think about the math here, the 1% decrease is a pretty huge sum and can save you a lot of money from your mortgage payment. You can always use this money for better investments or your kids’ education etc. This is a great deal for people who are already refinanced by Wells Fargo and are looking for a better refinancing program for the longer run. Wells Fargo really does know how to keep its customers happy and stress-free.

    Wells Fargo Refinancing REVIEWS

    Wells Fargo is a notable bank, and there are several customer reviews about them. Some people say that the offers are a scam, and they do charge extra fees while others have the opinion that the bank offers exactly what it claims to offer to its customers. There are good reviews as well as bad reviews. This is why we suggest that you should always consult a mortgage specialist so that you can make a better choice for your future.

    2015 FHA Programs

     President Obama released the details on a plan for a new lower cost FHA Mortgage Insurance Program. The Plan that President Obama announced last week was to reduce premiums charged by the Federal Housing Administration (FHA).President Obama will seek to address the ongoing housing problem, with a new program that will begin Jan. 26, 2015 and will reduce costs significantly of struggling Americans who pay FHA mortgage insurance payments. This plan will assist many Americans, through providing low insurance rates on federally issued mortgages to first time home purchases, minority Americans and struggling us citizens. This plan, while modest, will produce savings of $900 a year for each home-buyer. The best part of this is it, doesn’t require congress’s approval since lowering FHA fees is under the control of President Barack Obama and the HUD Secretary.

    The FHA program is designed to insure loans made to mortgage borrowers who make down payments that are as small as 3.5% of the value of a house. This is the key that makes the FHA program popular among first time home buyers who may not have a lot of money saved up (or liquidity in current properties). The FHA currently charges 1.35% per year in mortgage insurance fees. The new rate will reportedly be 0.85% per year, a full 0.5% reduction. This will be the equivalent of a 0.5% reduction in interest rates for FHA mortgage holders and could mean savings of up to thousands of dollars per year, there is no doubt that this will be a boon to FHA loan holders and to potential home buyers.

    Other options that Sellers are using to help first time home buyers navigate through the FHA loan program is that to assist the buys with a variety of costs There are a variety of costs that you can pay for your buyer when they choose a FHA  mortgage. FHA has a higher limit to the percentage of the seller credit in comparison to the conventional mortgage, which only allows for a 3 percent seller concession. FHA loans allow a 6 percent seller concession with certain restrictions.

    The seller can pay for discount points to bring the buyer’s interest rate down or closing costs themselves.

    Any other costs that are credited will affect the buyer’s loan amount. These charges include moving costs, costs to repair the home or any other costs in connection with the condition of the home. If you decide to contribute to these costs, the dollar amount of the buyer’s mortgage will go down accordingly. For example, if you give a $500 credit for a home repair, $500 will be deducted from the loan amount, affecting the overall LTV.


    At Present, FHA mortgage insurance on most 30 year fixed FHA loans is at a rate of 1.35% per year, which is still really good.. With the new guidelines, the mortgage insurance rate will be 0.85% per year. On a $200,000 FHA loan, that is a savings of $84 per month, or about $1000 per year.

    However small, this move by the president shows just how hard it is to recharge the housing sector since the 2008 mortgage crisis. President Obama’s plan  should start a process that could rope 250,000 new house buyers in the real estate market across the US. This will  lower refinancing costs for an estimated 800 thousand home buyers, Federal Government officials said. This is just a minute fraction of the  over  2.5 million homes that go to first-time home buyers a year in a healthy market, but it is for a segment of the population that requires this help. While housing usually leads the country out of recession, this time, it is an anchor, the hope is with rising employment, more buyers on the edge that could afford will be tempted to come back into the housing market.


    US Federal government Administration officials are not as down on the housing market as many media pundits say, they have some good facts to back them up their opinions too.,

    • In most markets home prices have risen 30 percent from their recession lows.
    • Of the roughly 13 million underwater homeowners, around 10 million have since come up from under water
    • More than 8 million homeowners have been able to refinance their mortgages, through the Obama’s (HAMP) or because of industry standards set by the program.
    • 3 million homeowners have been helped by the sister program of Home Affordable Refinance Program (HARP).

    FHA Loans for those with poor credit

    The mortgage borrower’s credit score is important in the actual amount of the down payment required for your FHA Mortgage. Typically, if your credit score is higher than 580, a borrower will only be required to put down 3.5 percent of the house price. If your credit score hovers between 500 and 580, the mortgage down payment requirement is increased to 10 percent, which can be hard for some borrowers. These are FHA guidelines that are strictly enforced by the FHA and might be increased depending on the lender that you decide to use. Lenders have their own system in how much they want as a down payment on a loan in order to decrease the risk of foreclosure.

    The president’s F.H.A. move is aimed at the key problem, first-time home buyers, s typically, such buyers account for 40 percent to 45 percent of home purchases.


    How to Find Cheaper Closing Costs on your Mortgage

    mortgage closing costs

    One of the more annoying costs about obtaining or refinancing a mortgage is paying closing costs which can be considerable depending on the loan. For many, closing costs are often not initially considered when getting a new or renewed mortgage. Sometimes, closing costs must be paid out of pocket as well.
    However, there are ways to reduce your closing costs so that you keep more of your money. It is important to understand what closing costs are, the different types that exist, and how you can find different resources to lower the closing costs for you.
    What are Closing Costs?
    Closing costs are fees that borrowers pay to the lender and third parties such as insurance and title/escrow companies. There are also optional fees that might be paid as well, such as for mortgage discount points.
    Also, there are two different types of closing costs, recurring and non-recurring. The difference is that non-recurring closing costs need only to be paid one time while recurring closing costs must be paid more than once. Many borrowers will have to pay both types of fees depending on a number of circumstances.
    Types of Recurring Closing Costs

    The number of closing fee costs can certainly pile up quickly when obtaining or renewing a mortgage. This means that you will need to consider all of these fees in order to know where you can save money and keep more cash in your pocket. What follows are a number of safe, legal strategies that can help you save more money on closing costs.
    Traditional Tips for Reducing Closing Costs
    The Seller
    If you are obtaining the mortgage for a new home, you can help reduce your out of pocket expenses by getting contributions from the seller. This is actually one of the most common means of reducing closing costs.
    During the negotiation to purchase the home, you can ask to include part of the closings costs as part of the deal. While this will generally lead to a higher price for the home, which is the part you pay, it can offset much of the closing cost expenses as well. Essentially, this means that you get a higher loan from the mortgage company and use part of that to pay the closing costs. For buyers who are short on cash, this is a common method to reducing closing costs.
    The Lender
    Another way to help eliminate closing costs is working with the lender. In essence, you negotiate a higher mortgage rate in return for a lower settlement or closing costs. This method is commonly used for refinancing a mortgage, but it can be used for new ones as well.
    In essence, the rate that you negotiate is often a fraction of a percentage which adds a little to your loan, but the extra money is used to offset the closing costs. For example, instead of taking a loan of 4.5%, you take one of 4.75% which gives credit back to you and covers part or all of the closing costs. Essentially, this is a tradeoff as you are paying slightly higher prices each month on your loan, but the effect is to reduce any out of pocket costs.
    The Real Estate Agent
    Another simple, yet effective method is to simply ask the real estate agent to provide credit towards the closing costs that are incurred. Of course, they can always say no, but it never hurts to ask and if they need your business, they just might use part of their commission to help pay off the closing costs in return for making the sale.
    In this manner, since the money is coming from the real estate agent’s commission, you do not have to take out a higher loan or negotiate a higher price for the home. This is another, highly popular way to help reduce closing costs.
    Of course, you can combine different credits from the seller, lender and the real estate agent. Just remember that you should not exceed the maximum allowable by the lender. If you find yourself with an excess of money after paying your closing costs, then it is best to use this to reduce the overall rate.
    Other Methods to Reduce Closing Costs
    Remember that you can shop around to find the best lending companies that will reduce your closing costs. You can comparison shop for title insurance or homeowner’s insurance and even home inspectors to find the best deal. You can check out the different fees that banks and lenders charge to find the best rates. A little extra footwork can lead to you saving hundreds of dollars or more.
    You can also use Prepaid Interest, the per diem interest that is due between the time you close on the mortgage and your first payment. If you can reduce the number of days between the per diem due at closing, then you can reduce your closing costs significantly. This is somewhat tricky as lenders may not close in time for that to take place.
    If you are refinancing your mortgage, you can try to roll the closing cost into your new loan which is a common practice, especially if what you get back is considerable and you plan to sell your home in the near future.
    You’ll want to check on all other options as well, there are a considerable number of sources that you can use to find ways in reducing closing costs. There are special programs, outside assistance and the like. It pays to take the time to look around first before making any commitments to find the right deal or set of deals that result in lowering your closing costs.

    Home Affordable Refinance Program Extended

    The Obama Refinancing Program: or HARP Refinance

    The government’s Residence Affordable Refinancing Program (HARP) was scheduled to expire at the end of Apr – until last full week. The Obama administration’s program to aid upside down borrowers, who arHarp Refinance Extendede present-day with their mortgage loan payments, re-finance at lower interest rates was extended an additional two years last full week. Regulators introduced last Thursday, April 11th, that HARP will probably now run till 2015, providing additional relief to homeowners.

    The HARP refinancing program was developed for property owners who must pay back more on their house than it is valued at due to dropping real estate rates to be able to take advantage of lower rates of interest and refinancing. Highlights and some common lender recommendations on the HARP / Obama refinancing program include:
    Here I will discuss the conditions borrowers have got to meet to be able to take advantage for the HARP extension:

    1. Fannie Mae or Freddie Mac needs to have sold the mortgage loan to a borrower no later than May 31, last year.
    2. Borrowers who already took advantage of HARP to refinance can’t do so again unless Fannie Mae refinanced their prior HARP loans between March 1st and Could 31, ’09.
    3. Borrowers should must pay back more than eighty percent for the existing worth of the house.
    4. Borrowers are unable to have missed any mortgage loan payments for the last 6 months and has to have a history of on-time payments, with the exception of one late disbursement by no more than 30 days within the last year.

    Who Owns Your Bank loan?

    For you to be suitable for the Obama remortgage / HARP program, your mortgage loan needs to be financed by Fannie Mae or Freddie Mac. Both have tools on his or her websites to see if they own your loan. To see if either one holds your property finance loan, you can inspect Fannie Mae. If they don’t have your home loan there, then check out Freddie Mac.

    Even though the government and lending institutions are usually at opposite sides of the table when it comes to decision-making about regulatory issues and programs that assist borrowers, the good news about the extension of HARP is that both the government and the industry are on the same web page. Fannie Mae and Freddie Mac are ultimately responsible for losses on home loan defaults, so their financial risk decreases when borrowers have ways to prevent go into default and better manage their payments. In the following way, everyone is aligned; borrowers, regulators, and lenders are motivated to make refinancing, at today’s relatively reduced house loan rate, a reality.
    Around 2.2 million property owners have refinanced using the 4-year-old HARP, and borrower advocates are extremely happy with the extension. Quicken Loans, an on the web financial institution, estimates that 2.7 million property owners are upside down and remain entitled for HARP loans. The online loan provider also claims that the typical savings from re-financing through HARP is about $200 per thirty day period with a home finance loan rate decrease in approximately 1.75%.

    Obama Re-finance: How To Save MoneyThe single best way to save money when thinking about contributing in the Obama refinancing program is to shop multiple financial institutions. Shopping multiple loan providers may ensure that you have the best possibility to acquire the best rate and lender service fees and close your mortgage in the shortest possible timeframe. If you shop around, you may be surprised at exactly how much dollars you could save from one loan company to the next. Just a number of for the bigger loan providers who may give you a quote include Bank of The states, Wells Fargo and virtually any quantity of smaller loan providers who may also aid you with the HARP program.

    Most loan companies may require that for you to do a HARP refinancing, you will need to benefit from it in one of many following ways:

    * Cut in the monthly principal and interest disbursement
    * Reduction in the rate of interest

    * Reduction in the amortization term
    * Move to a more stable product, e.g. Adjustable rate mortgage to Fixed-Rate

    About Mortgage Modifications

    Mortgage Modifications are a change to a bank loan contract between the loan provider and the property owner. The whole purpose is to adjust the terms of the contract so that the mortgage is affordable for the borrower. Bank loan Modifications have changed in the last couple years due to the housing crisis. Previously they existed only in the form of an interest rate reduction for a period of time when a delinquent borrower was suffering from a specific type of hardship, as a divorce, illness or a work loss.  Now bank loan adjustments are provided for a wider set of situations and normally change the terms of the mortgage permanently.
    A key factor that makes a house owner qualified for a mortgage loan modification is the existence of a valid hardship.  A borrower must make sure they could prove the hardship and that it is approved for these individuals to apply for a modification.
    These are examples of hardship that give you a good probability of getting approved: Arms, adjustable rate Home loan reset payment shock, illness of a close family member dependent on you, loss of work (as long as there is proof you will probably manage to meet the altered payments), reduced earnings, death for the borrower , death of spouse or co-borrower, military duty, medical bills, damage to your residence, not being able to sell or rent the house.
    These 3 points are the keys to a of successful mortgage adjustments:
    a) It’s essential to manage to pay for the payments of a reasonable home loan modification.
    b) You will need to be experiencing some kind of valid hardship.
    c) You have to manage to prove it.


    This does have tax consequences

    The Internal Revenue Service is offering guidance on property finance loan principal reductions in the federal government’s program for property finance loan alterations for borrowers who have fallen behind on their payments.
    The guidance in Revenue Procedure 2013-16 is designed to help borrowers, mortgage loan home loan holders and home loan servicers that are contributing in the Principal Reduction Alternative offered by means of the Treasury Department’s and Department of Housing and Urban Development’s House Affordable Modification Program, also known as HAMP-PRA.
    To guidance financially distressed house owners lower their monthly mortgage payments, the Treasury Department and Department of Housing and Urban Development developed HAMP, which is described at www.makinghomeaffordable.gov.  Below HAMP-PRA, the principal for the borrower’s mortgage loan may be reduced by a predetermined total called the PRA Forbearance Total if the borrower satisfies certain conditions during a trial time period. The principal reduction occurs more than several years.
    Less than this program, should the mortgage is in good standing on the 1st, second and third gross annual anniversaries on the effective date for the trial time frame, the mortgage loan servicing company cuts down the unpaid principal balance due for the mortgage loan by one-third of the initial PRA Forbearance Total amount on each anniversary date.
    The following means that should the borrower continues to make timely payments on the home loan for three years, the entire PRA Forbearance Total is forgiven. To encourage mortgage mortgage loan holders to participate in HAMP-PRA, the HAMP program administrator may make an incentive compensation to the home loan holder, known as a PRA investor incentive disbursement, for each of the 3 years in which the bank loan principal debt is lowered.
    The guidance issued Thursday night by the IRS offers that PRA investor incentive payments made by the HAMP program administrator to house loan loan holders are treated as payments on the mortgage loans by the United States federal government on behalf for the borrowers. These payments are normally not taxable to the borrowers under the general welfare doctrine.
    In the event the principal amount of a property finance loan home loan is lowered by an total that exceeds the overall amount for the PRA investor incentive payments made to the property finance loan home loan holder, the borrower might be required to include the excess amount in gross earnings as income in the discharge of indebtedness. However, many borrowers could are eligible for an exclusion from gross income.
    For instance, a borrower might be eligible to exclude the discharge of indebtedness income from gross income if (1) the discharge of indebtedness occurs (in other words, the mortgage loan is changed) prior to Jan. 1, 2014, and the house loan mortgage is qualified principal address indebtedness, or (2) the discharge of indebtedness occurs when the borrower is insolvent. To get more exclusions that might apply, see Publication 4681, Canceled Debts, Real estate foreclosures, Repossessions, and Abandonments (for Individuals).
    Borrowers receiving assist less than the HAMP-PRA program could document just about any discharge of indebtedness income-whether it is included in, or excluded from, gross income-either in the yr on the permanent modification for the house loan home loan or ratably greater than the 3 years in which the home loan home loan principal is lowered on the servicer’s books. Borrowers who exclude the discharge of indebtedness earnings should report both the total amount for the income and any kind of resulting lowering of basis or tax attributes on Form 982 Decrease in Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).
    The guidance issued Thursday explains that home finance loan mortgage loan holders are needed to apply a Form 1099-C with respect to a borrower who realizes discharge of indebtedness income of $600 or more for the yr in which the permanent modification on the home finance loan mortgage occurs. This kind of rule applies regardless of when the borrower chooses to document the income (that is, in the yr for the permanent modification or one-third each year to be the home loan loan principal is reduced) and irrespective of whether the borrower excludes some or all for the total amount from gross income.
    Penalty relief is provided for home finance loan home loan holders that fail to file and furnish the requested Forms 1099-C on a timely basis, as long as certain requirements described in the guidance are satisfied.

    indian state flageIndiana State Mortgage Help for Those in Danger of Foreclosure
    Many families find their homes in danger of being foreclosed on during these tough economic times. When you are in this situation, Indiana State Mortgage Help is available. A number of resources have been put into place to help those who find they cannot pay their house payment as agreed.
    The Home Affordable Modification Program, started under the Obama Administration, continues for those who need to modify their house payment due to a change in their financial situation. A number of programs are offered, depending on your personal situation. You may lower your monthly payment or your interest rate. A program is in place for those who have a second mortgage they are unable to make payments on and those whose home is underwater now have help. Many are unemployed at this time and financial relief is available. Foreclosure is not the only option you have at this time so contact the program today and see how they can be of assistance to you.
    http://www.877gethope.org/The Indiana Foreclosure Prevention Network has created a public-private partnership of housing related organizations, government agencies, community service organizations and lenders to help those who find themselves in danger of foreclosure. A number of programs are offered, ranging from assistance in developing a written financial plan to help in contacting mortgage providers. If needed, a referral to a certified foreclosure intervention specialist will be provided. These statewide programs are available to anyone who is concerned about losing their home.
    Many legal organizations are set up to help those in danger of foreclosure. When Indiana mortgage aid is needed and you feel your legal rights have been violated, turn to the Attorney General of the state. The Indiana courts have set up a listing o foreclosure prevention resources and the same is true of Indiana legal services. Help is available even for those who have no funds to pay an attorney, due to changed financial situations. It’s all a matter of asking as there are many who are willing and able to help in this situation.
    If you have missed a mortgage payment or are in danger of doing so, get help immediately. The sooner you do so, the sooner you can get Indiana mortgage help. With many Indiana foreclosure prevention resources available to help home owners, one is sure to be right for you. Doing so can help you to keep your home until you get back on solid footing again.
    Some resourcs to read


    Mortgage Assistance Available in Oregon

    It’s no secret to anyone that the United States has been facing a serious economic crisis for the last several years, which has negatively affected everything from overseas trade to local job loss and nationwide reductions in wages. Many families are literally struggling to meet their basic needs, and Oregon has been hit especially hard by the recession. Oregon homeowners who are facing foreclosure may qualify for assistance through a variety of different state and national programs, including the Oregon Homeownership Stabilization Program (OHSI), Home Affordable Modification Program (HAMP), The Home Affordable Refinance Program (HARP), and The Foreclosure Avoidance Mediation Program, as well as several others.


    Wisconsin Mortgage Assistance Program

    Foreclosure rates have reached an all-time high in the Unites States and in the state of Wisconsin. Every homeowner’s story is different, but in the end they all feel the same: frustrated, angry and possibly even helpless, in addition to many other emotions. If your financial situation has recently declined due to job loss or some other reason and you are facing foreclosure, you should be aware that there is Wisconsin mortgage help available and you don’t have to simply allow your mortgage company to reclaim the home that you have worked so hard for. Here are some options for you if you are interested in taking advantage of the various types of Wisconsin mortgage assistance programs available:
    If you have attempted to negotiate with your lender on your own yet have failed to reach an agreement, a Wisconsin Circuit Court Judge has approved the implementation of a special program which consists of volunteer mediators who will mediate on your behalf, provided the mortgage company agrees to participate.
    A professional mediator can assist you in negotiating a modification in your loan that will enable you to pay lower payments or assist you with regaining control over your mortgage payments in some other manner. The mediator can also persuade the lender to agree to waive any applicable fees, including loan revision fees as well as late or delinquent charges.
    Housing and Foreclosure Assistance
    With the intent of preventing foreclosure within the state of Wisconsin, several non-profit organizations have joined forces with participating government agencies to form the Dane County Foreclosure Prevention Taskforce. This group of individuals’ goal is to provide Wisconsin government mortgage help to eligible homeowners. This program can assist individuals through prevention, intervention and then stabilization.
    Direct Assistance from Mortgagers
    The state of Wisconsin has negotiated deals with some specific lenders in order to help individuals who are at risk foreclosure. Bank of America has agreed to revise the loans of some homeowners facing foreclosure, and they will also waive the usual loan modification fees. In addition, Bank of America has dedication over $40 million dollars toward assisting struggling homeowners. Furthermore, this particular lender has agreed to waive any early pay-off fees in the event that a borrower decides to refinance their home.
    JP Morgan Chase, another major home lender, has opened a new center that provides housing counseling to individuals in your situation. This new center is staffed with specially trained foreclosure prevention counselors who will meet one-on-one with borrowers and provide them with free advice as well as assistance.
    Other Sources
    There is also the option to visit your local county social services office. No matter which county you live in, there are funds set aside in order to provide relief in situations involving a financial crisis. As long as you’re able to show proof that you are at risk of foreclosure, the Department of Social Services will ask that you complete an application and interview before deciding if you qualify for assistance or not. Assistance is typically available to those in certain income brackets, but if you make more than minimum wage, it is certainly worth a shot to apply and see if you’re approved. Any assistance that you can receive with catching up on your mortgage payments brings you one step closer to the end of your financial problems. Furthermore, homeowners have even requested assistance from their place of worship, and many churches will take up a special collection if they are aware of your particular circumstances.
    Obviously there are various resources available throughout the state of Wisconsin that can provide you with the assistance necessary to keep your home in the event foreclosure is imminent. Many agencies that provide Wisconsin mortgage help will also refer you to other agencies that can assist with job training and placement as well as assistance in other ways. If you require further assistance, simply ask your housing counselor, who can hopefully refer you to the appropriate agency that can give you the help that you need.

    underwatermortgageWriting the ‘Hardship Letter’

    One of the items your Bank or  lender will  require  from you  during the loan modification process is a hardship letter. A hardship letter is typically a written reason as to what  happened that  has caused you to fall behind on your mortgage and it is a key item  in helping you stop foreclosure or modify your mortgage agreement.

    This letter acts much like an outline or biography of your current issues that are affecting your ability to meet your financial obligations, and by this we mean not being able to afford your mortgage.  Lenders do look for what is known as a hardship letter when a borrower applies for a loan modification. Such a letter is a requirement for modification applications under the government’s Making Home Affordable program.

    A hardship letter is not the basis for modification approval that depends on the borrower’s financial situation and the red tape of the various government and Bank programs. Rather, the purpose of the hardship letter is to explain upfront, in simple language, why borrowers missed payments, and what they propose as a solution.
    less is more when it comes to writing a hardship letter,giving them exactly what they need and nothing more
    The lenders’ loss mitigators, faced with mountains of modification requests, are unlikely to spend time reading more than the first few lines of each letter.
    And there is always the risk that borrowers who go on at length could unknowingly trip themselves up with unnecessary details that raise red flags for a mitigator.

    When the housing bubble burst, home values dropped, and millions of homeowners who did the right and responsible thing—shopped for a home, secured a mortgage, and made their payments on time each month—were left with houses worth less than they paid for them and mortgages worth more than their homes. Today, many of these homeowners are locked out of refinancing because they are underwater.

    The hardship letter should open with a succinct explanation of why the borrower stopped paying the mortgage. The letter should cite a reasonable specific hardship, like a lost job, illness or reduced income.
    Next, the letter should briefly cite any steps the borrowers took to avoid defaulting on their loan, like cutting household expenses or tapping into savings.
    If their financial situation has since improved, or is likely to, borrowers should mention that as evidence that their hardship was temporary and won’t hamper their ability to make payments on a modified loan.
    Finally, the letter should state exactly what borrowers are applying for. Is their proposed solution a lower interest rate, for example, or a principal reduction?
    Borrowers who are underwater that is, owe more on their mortgage than their property is worth may ask their lender to consider a short sale, in which the house is sold to another buyer for less than the amount owed. Its widely  advised that homeowners considering a short sale apply to the bank before putting their house on the market.
    The fact that a home has lost considerable value should not be cited as the sole hardship. The borrower might include that information in the hardship letter, but he or she must also explain the inability to pay the mortgage

    In the case of a short sale, the hardship might be the borrower’s need to sell right away because of a job transfer or long-awaited employment opportunity elsewhere.
    One of the items your lender or servicer will ask for during the loan modification process is a hardship letter. A hardship letter is a written explanation as to what “event” has caused you to fall behind on your mortgage and it vital in helping you stop foreclosure.

    This letter acts much like an outline or biography of your current “life” issues that are affecting your ability to meet your financial obligations.

    CHFA EMAP Program for Homeowners

    CHFA EMAP Program for Homeowners


    The CHFA EMAP Program for Homeowners in Difficult Situations
    The Connecticut Housing Finance Authority (CHFA) has established a number of programs to assist citizens in danger of losing their home during these tough economic times. Mortgage assistance loans, free counseling services and innovative refinance opportunities are offered. If you are in danger of losing your home, look into one or more of these programs to see if they are right for you.

    Foreclosure Prevention Counseling-This type of counseling is available for those possibly facing foreclosure. A counselor works with the homeowner and lender to find a solution both parties can agree on.
    Connecticut Fair Alternative Mortgage Lending Initiative and Education Programs-Many families qualify for a lower-interest, fixed-rate loan under this refinancing program. Families facing a financial hardship that was unexpected may qualify.
    The Emergency Mortgage Assistance Program-This program offers temporary monthly mortgage payment assistance for those homeowners facing foreclosure as a result of a financial hardship. These payments are made for up to five years and the EMAP loan is secured using a subordinate, fixed-rate mortgage on the property. These loans must be repaid and there are limited funds to assist homeowners so the repayment of the EMAP mortgage begins when the homeowner’s financial situation improves sufficiently.

    To learn more about these programs, contact the Connecticut Housing Finance Authority directly. Important changes have recently been made to the chfa emap program to allow more homeowners to benefit. Homeowners with a mortgage insured by the FHA can now apply for these loans and those who are in danger of foreclosure due to delinquent condominium fees, taxes or assessments may apply. Pension and retirement funds must also be disclosed and certain portions may be retained while still allowing the borrower to apply for the loan.

    Who May Apply?

    Homeowners facing foreclosure, those who anticipate becoming 60 days delinquent on their mortgage, those who are currently 60 days behind and those who have received a notice of intent to foreclose may apply for chfa emap programs. Certain requirements must be met. The home owners may only have one home and must demonstrate a generally favorable credit history before the financial hardship occurred. In addition, the borrower must be in a situation where he or she can’t meet the current mortgage obligation while showing that he or she can make the repayments when they come due.

    Mortgages and Types of Property Eligible for These Programs

    First and/or second liens may be refinanced using these programs as long as they are on the primary residence. The property must be a single-family, two to four-family home (borrower must be owner-occupant on one unit), condominium or planned unit development. The property may not be used for commercial purposes nor can it be a vacation home, an investment or a rental property.

    Restrictions the Homeowner Must Be Aware Of

    Eligibility for the EMAP program must be recertified every year and no other loans may be taken out on the property while the homeowner is receiving this assistance. If a pre-existing mortgage is paid off while the assistance is taking place, the homeowner may be required to take the monthly payment which was going toward the now paid off mortgage and apply it to the monthly mortgage amount with is being assisted. If you have previously received assistance under this program, you may reapply if your financial situation changes and you find you need assistance again. Certain conditions must be met.

    Those who wish to have more information may contact the Connecticut Housing Finance Authority directly. Here one can learn more about the chfa emap income limit, program eligibility and more. Before taking this step, it is best to contact the lender directly to see if a program is available though the lender as CHFA funds are limited. The lender may be able to assist you through this difficult time and help you to keep your home while doing so.

    Newer Posts »