Make Home Affordable: Loan Modification

The Obama administration has created a foreclosure prevention plan rthat is designed around to main mortgage workout solutions that allow Homeowners to stop foreclosure and make home affordable.

These two mortgage workouts are loan modification and mortgage refinance.
Both the loan modification and mortgage refinance agreements and program terms allow homeowners to lower monthly payments if they meet some basic qualifications and their lender is willing to work with them.

This post will be focused on the loan modification side of the Making Home Affordable Program.

Making Home Affordable Loan Modification Program Qualifications:

• The property must be the Homeowners primary residence.
• The homeowner must have a current mortgage payment that is 32% or more of their monthly income.
• The Homeowner must have incurred some sort of unavoidable financial hardship.
• The Homeowner must have a home value of 730,000.00 or less
• The Lender must agree to participate in the Making Home Affordable Loan Modification Plan.

The Make Home Affordable Loan Modification Plan has helped many Homeowners has done far better the it's peers such as the FHA insured plan known as the Hope For Homeowners Mortgage Refinance Plan.

You can learn more about the Making Home Affordable Loan Modification and Mortgage Refinance Programs through the Government Websites @ http://www.makinghomeaffordable.gov

Learn how to use this site and read a review of MakeHomeAffordable.Gov

Stop Foreclosure

Millions of American Homeowners have been wrestleing with the daunting task of having to find a way to stop foreclosure.

How can a Homeowner stop foreclosure?

There are a number of ways to stop foreclosure. Though there are vonly two primary results. A Homeowner must first decide which result is the objective of their efforts going to target.

The Two Results....

1. Keep the Home
2. Move out and Give up the Home.

If a Homeowner no longer wants the home several options are available...

1. Short Sale
2. Sell
3. Deed in lieu of Foreclosure
4. Foreclosure

If a Homeowner wants to keep their home there are even more options. Today there is a dominaiting three foreclosure alternatives that allows the Homeowner to stop foreclosure and keep their home.

Three options...

1. Repayment Plan
2. Forebarence Agreement

• Both of these options stop foreclosure by reinstating the original loan or mortgage agreement

3. Loan Modification

By far the mosrt popular foreclosure alternative is loan modification. Homeowners tend to favor a loan modification over other forms of foreclosure workout agreements because a loan modification allows the Homeowner the chance to obtain a reduced mortgage payment or even sometimes a principle reduction there by greatly reducing the cost of the mortgage.