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More and more people in America are finding it more and more difficult to make their monthly mortgage payments. This is why so many people are losing their homes to foreclosure. With the economy on a downward spiral, it can often seem as if a family has no choice but to leave their home. However, thanks to the government home loan modification program, there is hope for families that want to keep their homes but may be experiencing financial struggles. The following includes some basic information about the government home loan modification program, eligibility, and how you might find more information about whether or not you qualify for it.
The government home loan modification program is one that is focused on helping homeowners save their properties from foreclosures. Basically, when a person can no longer make his or her monthly mortgage payments, the bank is forced to sometimes take back this property in the hopes of selling it to someone else. This has a negative effect on both parties: the bank loses money because it is not receiving consistent payment on the loan, and the individual and his or her family lose their home.
Government home loan modification is part of a program that is focused on making home ownership more accessible and affordable for Americans. To do this, the program takes government subsides and combines them with incentives for lenders. This encourages lenders to help people find better rates so that monthly payments are made more affordable and reasonable. In the process, principal amounts and interest rates lower so that people can keep their homes and so that lenders and services receive necessary cash flow.
Incentives are given to lenders so that they are more likely to modify or change home loans so that they match 31% of the person’s monthly gross income. Government officials project that this program will stop millions of foreclosures and could give the economy the boost it needs to succeed. Thus, this is a win-win situation for lenders and borrowers alike as well as for the general country.
You may qualify for this program if your home is your primary residence, if you owe $729,750 or less on your mortgage, if you invested in this mortgage before January 1, 2009, and if you have had trouble making your monthly payments. This last item may be because of a loss of job or reduction in income or if there has been an increase in your expenses because of something like illness.
If you want to apply for this program, you should do two things. First, take the time to call local lenders to see if they will work with you. Often, you can find this information out both in the local newspaper and online. Additionally, take the time to visit the government’s website. Here, you can answer a series of questions to ensure you qualify and can then find helpful information
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