Wells Fargo offers existing customers help applying for a loan modification.

With over 8.5 million workers losing their job in 2010 and over 7 million homes at risk of foreclosure, you are in good company if you are struggling to pay your mortgage payments. Wells Fargo and other banks know this and have designed loss mitigation programs to help you get on track with your mortgage payments and avoid foreclosing on your home.

If you own a mortgage, the odds are it is with Wells Fargo. One in every six mortgages are managed by Wells Fargo. Wells Fargo’s loan modification figures are not bad, which is encouraging if you are struggling to make ends meet and own a Wells Fargo mortgage. In 2010, less than 2 percent of Wells Fargo’s mortgage ended in foreclosure and delinquency and foreclosure rates were a 25 percent lower than the of the banking industry’s average.

There are three main programs you can apply for if you are an existing Wells Fargo customer and would like to improve your mortgage terms: The Refinance Program, the Repayment Plan and the Loan Modification Program. Whether you simply want to take advantage of lower interest rates or are on the brink of losing your home, there is a program for you.

Our previous article in this series dealt with Wells Fargo’s Refinance Program for Existing Customers. In this article we will look into Wells Fargo’s Loan Modification program. This program is designed to lower your monthly mortgage payments by giving you a better deal on your interest rate, the length of your mortgage (for instance, reducing your term from 30 to 20 years) or in some cases (rarely) by reducing the balance on your loan.

Loan Modification

Wells Fargo is an agent for the Obama’s Administration Home Affordable Modification Program (HAMP) and also provides in-house modification programs. You can apply for a Wells Fargo loan modification program here. You will need to supply the last four digits of your Social Security Number, your current loan’s number and your property ZIP Code books. There are several programs you might be eligible for, so Wells Fargo have prepared a questionnaire you can fill in. Once you finish filling in the form, Wells Fargo will decide what programs you are eligible for (if any). To help you collect the necessary information and explain the bank’s requirements, Wells Fargo has prepared a financial worksheet you can download and fill in. Click here to download Wells Fargo’s financial worksheet.

The Mississippi Home Corporation began as a direct result of the Mississippi Home Corporation act of 1989. Its main purpose? Provide affordable and sustainable housing for the residents of Mississippi. The Mississippi Home Corporation acts a liaison agency between the Mississippi Governor, the Mississippi Legislature, the U.S. Congress and agencies throughout the U.S. to increase awareness of the serious plight Mississippi residents are facing.

To carry out this agenda the Mississippi Home Corporation has launched various programs to help homeowners and residents that wish to buy a home. These include the Mortgage Revenue Bond Program, the Mortgage Credit Certificate Program, the Down Payment Assistance Program and the Mississippi Home of Your Own Program among others. Let us look at each program individually.

Mortgage Revenue Bond Program and the Down Payment Assistance Program.

This program offers borrowers under the Federal Housing Administration (FHA) and the Department of Veterans Affairs with assistance on the 3 percent down payment required for a home purchase. This aid comes in the form of a second mortgage. The interest rate for this added loan is set at or below the going interest rate. The main benefit of this program is that it opens the housing market for borrowers who could otherwise not afford the down payment they needed to qualify for a mortgage.

Mortgage Credit Certificate Program.

The Mortgage Credit Certificate program helps homeowners qualify for a mortgage by reducing the Federal Income Tax they must pay.

Mississippi Home of Your Own (HOYO) Project.

The HOYO project focuses on residents with disabilities and their families. It aims to provide the financial counseling and financial support they need to qualify and keep their own homes.

These are only a few of the many programs under the Mississippi Home Corporation. Visit their official website for more information on these and other programs.

As you can see, there is not a lack of programs struggling homeowners and potential homeowners can apply for in Mississippi. We just looked at small selection of programs available. The key is to take matters into your own hands and find the help you need to either save your home or get the financing you need to buy one.

Finding a loan is a challenge for many Mississippi residents. Lenders, scared by the recent housing and debt crisis, have tightened their loan eligibility requirements. This means low and very low-income workers often find it impossible to find the finances to buy their own home. Federal and state programs are available for Mississippi residents and businesspeople.

The United States Department of Agriculture provides mortgage help for residents in rural areas. Rural areas are generally defined (although there is some flexibility) as municipalities with 10,000 residents and less. Besides the general programs applicable to all rural residents the USDA provides (section 502 Direct Loan) special help for residents affected by Hurricane Katrina. This help applies to residents affected by Katrina in Mississippi, Alabama, Texas and Louisiana– $17.8 million go for Mississippi while another $178 million will be allocated to 49 counties in the affected area.  The USDA also guarantees loans for single family housing, whether to build or purchase.

Homeowners with properties in need of repair can apply for the Section 504 Repair Loan and Grant. This program provides loans to low and very low income families. Senior citizens 62 and over are eligible for added programs with a total of $50 million dollars set aside for financing.

For more information on USDA housing programs visit the USDA’s official website.

The Small Business Association also has special programs for residents in disaster areas in the State of Mississippi. These programs, although not as heavily funded as other larger programs, seek to fill the gap between larger federal programs and insurance compensation in the most affected areas. The programs offer subsidized loans for homeowners with rates as low as 2.687% and terms of up to 30-years. These loans are designed to help towards the repair of real estate not covered by insurance. This includes the deductibles paid toward insurance claims. For more information on these and other programs call the Federal Emergency Management Agency at 1-800-621-3362 and ask for information on the SBA loans program or visit SBA’s official website.

Continue reading our next article for information on two mortgage aid programs providing help in the state of Mississippi: the Mississippi Home Corporation and the Housing and Urban Development Department.

Few states have been hit in the last years like the state of Mississippi. The housing and credit crisis has only been the latest financial crisis to hit the area; the final straw of an already battered community. If you are a homeowner with a mortgage or would like to buy a home, read on. In this series of articles, we are going to take a close look at the mortgage aid programs in Mississippi.

Our analysis will include programs offered by the United States Department of Agriculture (USDA), the Small Business Administration, The Mississippi Home Corporation and the Housing and Urban Development Department. These programs are specific to the state of Mississippi and consider the special needs of Mississippi residents.

Foreclosure Avoidance.

Before we take an in-depth view of available programs, let us look at the basic steps Mississippi residents can take to avoid foreclosure. Your first step should be to hire professional help to get the advice you need to save your home. This advice does not have to be expensive; in fact, it can be free.

Contact a housing counselor in the state of Mississippi approved by the Housing and Urban Development Department and you can get the help you need for free. These counselors are trained to assess your financial situation and create a plan to rearrange your finances and avoid foreclosure. They have contact information for the major lenders in your area and can help you to negotiate a loan modification, short sale, mortgage refinance and other foreclosure avoidance methods with your lender.

If foreclosure is a real possibility, it may be time to hire a lawyer experienced in foreclosure law. A foreclosure is, after all, a lawsuit filed by your lender to claim the security of your mortgage—your home. Foreclosure can be a complicated process. The specific procedures change from state to state, so it is smart to hire a local lawyer with years of experience in foreclosure avoidance. Again, these services don’t have to be expensive. Contact the Mississippi’s Legal Services Resource Center and find out if you qualify for free or low-cost legal aid.

Foreclosure in Mississippi can follow a judicial (lawsuit filed at a court of law) or a non-judicial route. Non-judicial foreclosures are handled by a trustee—a person who manages and processes a foreclosure. In Mississippi foreclosures are fast; they usually take 90 days or less, and do not come with a redemption period after the foreclosure sale. This means the foreclosure sale is final and previous owners cannot recover their home once it is sold.

Find out more about mortgage aid programs in Mississippi in our next article.