by Jaynee Sasso
Today’s distressed homeowners have the greatest opportunity compared to previous years to save their home from foreclosure. The economic downturn has placed many homeowners in a position of strength because hard-pressed banks now offer more options. Some of the nation’s largest banks have received billions of dollars in subsidy and incentive payments from the federal government to modify home loans. A few of the benefits of the loan modification program is to have your interest rate or loan balance reduced and be given up to $1,000 a year for five years to reduce your loan principal. However, the reality is that the process still requires that you act quickly and remain proactive. There are a wide range of counselors and professionals available to guide you throughout the process.
The thought of losing your home can cause feelings of shame, hopelessness and anxiety. The decision to keep your circumstances hidden can potentially cause you to miss out on receiving vital information about the resources that are readily available in your community. Although it may be awkward, you must be willing to push aside your pride and ask for help. You must remember that everyone has been affected by the present economic downturn and that your situation is not unique. There are many options available to bring your mortgage current, reduce interest rates, and stop the foreclosure process. Please seek legal counsel before choosing the best option for you and your family.
According to the Hope Now organization the following options are available:
Short sale – This option allows you to sell your home and ask the lender to accept less than the full balance on your current home loan. This usually is necessary when the amount owed on your home is more than the present market value.
Deed in lieu of foreclosure – This allows you to voluntarily transfer legal ownership back to the lender.
Repayment plan – This allows the past due amount of your home loan to be paid over a period of time in order to bring your loan current and give you a fresh start.
Loan modification – You negotiate a permanent change of the terms for your mortgage note and the account is reinstated to current status.
Fannie Mae Homesaver Advance – A second mortgage is given to bring the delinquent first mortgage current. The loan is to be repaid over a 15yr period.
Home Affordable Modification Program – This program helps borrowers in default and those most at risk, allowing them to stay in their homes by establishing more affordable housing payments. The target amount of the newly established housing payment is no more than 31 percent of a homeowner’s monthly gross household income.
For further details please visit www.HopeNow.com
Jaynee Sasso is President of Faithful Assistants Inc. and creator of coaching program “The Commonsense Way to Wealth.” www.commonsensewaytowealth.com. Email firstname.lastname@example.org with questions or comments.