Is Foreclosure Knocking at Your Door?

The economic crisis has made it difficult for many people, including homeowners. The good news is that many homeowners who were finding it difficult to make their mortgage payment have been able to save their home, and you can too. If you’re having difficulty making your monthly mortgage payment there are programs that can help.

Your Servicer Wants to Help

Your servicer (the company you send your monthly mortgage payment to) wants to help you keep your home. Many servicers implemented loan modification programs in 2009 to assist homeowners experiencing financial difficulties by lowering their monthly mortgage payments. Plus, many servicers are participating in the government’s “Making Home Affordable Program” and are working with nonprofit counseling agencies through HOPE NOW.

If you don’t know who services your loan or how to contact them, check your mortgage statement or look online at www.HopeNOW.com.

If you’ve already contacted your loan servicer about mortgage modification programs and been turned down, call them again. You may qualify under a new program.

Mortgage Loan Modification

In a mortgage loan modification, you and your servicer agree to permanently change one or more mortgage terms to make the payments more manageable. Changes may include reducing the interest rate, extending the term of the loan, forbearing (interest free) or forgiving principal, or a combination of these factors.

Loan modification could lower your monthly mortgage payment by hundreds of dollars and save your home from foreclosure!

Making Home Affordable Program

The “Making Home Affordable Program” is part of the U.S. government’s plan to help families set an affordable mortgage payment. The program lowers borrowers’ housing-related expenses (principal, interest, taxes, insurance, and assessments) to 31% of gross monthly income (before tax deductions). The program also will pay you up to $1,000 per year on your principal for five years if you make your payments on time. To qualify, you must meet certain eligibility criteria, including:

• Home is your primary residence.
• Amount owed on first mortgage for a single family home is $729,750 or less.
• Mortgage dated before January 1, 2009.
• First mortgage payment* is over 31% of gross monthly income.
• You are having financial difficulty making your current monthly payment.