Stopping Foreclosure: Loan Modification Program That Helps Struggling Homeowners

The foreclosure crisis is showing no signs of receding. In fact, it seems to be getting worse. And now, the Obama administration is taking more aggressive steps to nudge mortgage providers into helping struggling homeowners hang on to their homes.

So just what is this latest step aimed at stopping foreclosure for many homeowners? It’s a Treasury program whose goal is, according to the Baltimore Sun article, Administration plans to press mortgage providers to accelerate help to struggling borrowers, to:

. . . increase the rate at which troubled home loans are converted into new loans with lower monthly payments, . . . Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications . . .

Stopping Foreclosure: What Government Program Means for You & Your Mortgage

What does this mean for the average homeowner who is desperate to stop foreclosure? A couple of things.

First, it means that the government is finally getting realistic about what’s causing the foreclosure crisis to deepen. At first, it was subprime mortgages. The prolonging of this crisis can be placed squarely on people losing their jobs.

No job; no money to pay the mortgage. Simple economics.

Second – and perhaps more important – it means that more help is going to be available to homeowners who are trying to stop foreclosure. Via this program (the Home Affordable Modification Program), the government is putting its money where its mouth is. How? By giving cash incentives to mortgage providers.

Under the Home Affordable Modification Program, those lenders that work with homeowners to lower payments will be paid $1,000 for each loan modified. AND, they can receive an additional $3,000 (spread out over three years, ie, $1,000 per year).

Why Your Mortgage Provider WANTS to Help You Stop Foreclosure

As mentioned in the last post here on stopping foreclosure, it costs lenders roughly $78,000 to foreclose on a home. And what does it cost them NOT to foreclose? About $3,300. So many mortgage companies are willing to play ball because it’s way cheaper for them – and better for you. A win win for all.

Stopping Foreclosure: Are You Eligible for Help under the Home Affordable Modification Program?

If you’re serious about stopping foreclosure and want to know if you qualify for a home loan modification under this program, visit http://makinghomeaffordable.gov/modification_eligibility.html.

P.S.: You Can Save Hundreds of Dollars — Or More — Per Month on Your Mortgage:  There are homeowners just like you who have saved thousands of dollars in loan modification fees. And, they’ve lowered their mortgage payments by hundreds — and in some cases over a thousand dollars — a month. Get the details in this home loan modification kit.

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Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.