Authored by Lori Godin in Loans
Published on 02-25-2009
Government home loan modification includes programs that have been created and federally funded to reduce the amount of homeowners that are in danger of losing their homes due to foreclosure. As the foreclosure rates increase and the number of homeowners that are able to maintain their mortgage payment decreases, it has become a necessary measure for the government to take on some responsibility in reducing the rate of foreclosure among homeowners.
There are many advantages of taking advantage of government home loan modification programs, compared to private and commercial lenders. Government home loan modification programs often come at a lower monthly cost than private home modification loans.
Other benefits of government loan modification programs include:
- Lower monthly payments. Lower monthly payments are often achieved for those facing foreclosure and seeking assistance from the government loan modification program. When it comes to creating a repayment term that is affordable, the target payment is often calculated at 38% of the income of the homeowner.
- There are hundreds of billions of dollars available to homeowners requiring assistance. With so much available, you could be one of the many homeowners able to take advantage of the funds.
Recently, there has been over eight hundred billion dollars injected into government loan modification funds that are available to consumers just like you that are facing home foreclosure and seeking an alternate option which means that you could keep your home.
Government home loan modification programs are available to homeowners facing foreclosure and are often based on financial need. The homeowners that are eligible for the government loan modification programs are up to three months behind on their mortgage payments and liable to be issued a notice of default which means that the homeowner can be liable to entering the process of foreclosure.
As government loan modification programs are based on financial need, the homeowners that are in more debt and facing foreclosure and require immediate help are often granted loan modification terms first. Loan modification programs allow affordable payments that can add the balance that owes towards the home loan on to the principal of the loan so that the homeowner can afford the monthly payments without worrying about whether they are going to be able to repay the amount that has been outstanding for the past three months.
Government home loan modification programs are an essential way to save your home from foreclosure. Foreclosure is going to have a negative effect on the credit rating and contribute to the financial ruin of your family. Losing your largest asset, the home, can prevent financial stability for years to come. Taking all measures possible to reduce the chances of foreclosure is a responsibility that every homeowner should take seriously.