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Home Loan Modification  

In today's current economy, millions of American's are struggling to make their house payments each month.  The biggest culprit for this tragedy is that of the subprime mortgage market which was increasingly popular several years back.   These mortgages allowed people to excessively go past their means and buy houses that they couldn't afford.  Many of these mortgages were adjustable rate mortgages which offer a teaser rate but then hikes up the price after a year or two.  For those that are stuck in an adjustable rate mortgage, the government has created a program which can allow you to keep your home but also lower your monthly payment.  The program is called a home loan modification.   

A home loan modification is an option that has been determined by the government to give homeowners a way to convert their existing mortgage into a fixed mortgage product.  Essentially the government allows you to get a mortgage refinance on a bad credit mortgage regardless of your credit score or history.  This is a relief to many Americans as their credit scores have been tainted by their inability to pay their monthly mortgage payment.  A home loan modification is quite complex and requires some assistance as it is not your normal mortgage refinancing product.  There is no need to fear however as this is a fantastic program for anyone looking for help in a dire situation. 

Some of the requirements that a home loan modification may have is that you will need to have missed a few payments in order to prove that you are struggling. Most of the time, a simple bad credit mortgage refinance will do the job, but if your credit history and income history has lowered dramatically, this type of program is definitely something that you should take advantage of. The reason Congress enacted this type of program was so help homeowners that have no other option but foreclosure. This program exists so that foreclosure rates would begin to decline so that the housing market would rebound eventually.

If you start missing mortgage payments, there is a slim window that you have in order to take advantage of one of these programs before foreclosure becomes your only option.  Make sure to contact a loan officer that has experience with home loan modification in order to make sure you follow all of the guidelines to enable you to partake in this type of loan program.  By following these tips, you will be able to get out of financial crisis and take advantage of a loan modification product. 

 

  10 Steps to Home Ownership:

Step 1: Are You Ready?

Step 2: Hire a Realtor

Step 3: Get Loan Pre-approval

Step 4: Search for Homes

Step 5: Choose a Home

Step 6: Obtain a mortgage

Step 7: Make an Offer

Step 8: Insure Your Home

Step 9: Close the Deal

Step 10: Avoid Foreclosure

 

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