MORTGAGE ASSISTANCE

A report released by the Office of the Comptroller of the Currency and the Office of Thrift Supervision reveals that a homeowner who had a mortgage loan modified by the federal government’s Home Affordable Modification Program (HAMP) was more likely to miss fewer payments after the modification was complete.

In fact, according to the report, fewer than 17 percent of home loans modified under HAMP had missed at least one monthly payment and fewer than 8 percent had missed two months of payments.

If reverse mortgages were a prospective way for you to get cash from your home, you may be happy to know that it seems they have gotten a bit cheaper for homeowners. Once known as one of the most expensive ways to convert home equity into cash, now thanks to shifts in mortgage rates, lenders have cut costs to drum up business, making them much more desirable.

The Deal with Reverse Mortgages

Buying a new home is an exciting experience, especially if this is your first time with the process. Before choosing a mortgage loan provider, you need to make sure your finances are in order, you know the type of mortgage you are interested in, and how much of the mortgage payment you can afford. Then you can start looking for the mortgage loan provider that best fits your financial needs.

Keep in mind that when choosing a mortgage loan provider you are selecting someone that you plan on having a very long, 30 year business relationship with. It is important for you to conduct a research on the financial institution you plan on working with to ensure that you do not make a decision now that you may regret later. Although getting the best rates for a mortgage loan is your ultimate goal, some side notes that you also want to look out for are customer service. Some bank institutions have great customer services and very pleasant to do businesses with – while others can be quite cold.

The U.S. Department of Treasury  announced the Making Home Affordable Plan,  as part of President Barack Obama’s continuing endeavor to resurrect the U.S. economy. Companies are also helping to restructure mortgages to aid the faltering housing market and in reaction to growing unemployment. The  plan is designed to aide 7-9 million homeowners in keeping their homes, and to stop the destructive tide of foreclosures. There are two separate programs, The Home Affordable Refinance and The Home Affordable Modification – both have been created to help different groups of homeowners.

The Home Affordable Refinance (expires June of 2010) helps:

Mortgage assistance for those who have recently lost their jobs is being offered by unconventional sources.

With the economy continuing to hurt the housing market, some homeowners have even resorted to asking lien holders to produce the note before they can legally be foreclosed on. Home builders and loan providers are providing mortgage assistance ranging from 3-6 months so that the recently unemployed can either stay current on their mortgage or to enroll them as new business customers.

When the economy is in an upswing everyone will be your best friend, if they see a cash incentive in their future. Those types of relationship are what helped start the tumble of the US economic system. Lenders helped people secure mortgages that were either beyond the means of the borrowers or had interest rates that would balloon out of control and become unaffordable. The damage has been done, will the lenders that helped you purchase your home now help you in a foreclosure situation.

If a homeowner on the brink of foreclosure has equity in their home, steady income and a reasonable credit rating, a bank may be willing to negotiate a better interest rate on your current mortgage. The key is contacting the lender after a couple of missed payments, not when you are on the brink of doom. The sooner you react to your situation, the more likely your lender can help you avoid foreclosure. Contact your lender ASAP and ask them what options may be available for you.

If you think your home may be foreclosed upon there may be help. Be careful with the help you choose to seek, as during hard times there are many unsavory characters willing to take advantage of your miserable state for their own benefit. Well meaning friends may offer you bad advice and professionals in the guise of well meaning investors, attorneys, mortgage brokers and realtors may all prey on your innocence. There are also foreclosure prevention companies out there that as long as you investigate them, may be able to help you out of the hole you are in.

If a foreclosure prevention company suggests a procedure that sounds too good to be true, it is advised that you do not take their word at face value. Predatory lenders may suggest the following strategies for staving off foreclosure, not fall victim to any of these scams:

Do you owe more on your mortgage than your home is actually worth? If so, you have an underwater mortgage. Many homeowners with underwater mortgages are in danger of losing their homes to foreclosure.

You should know there are several options out there for you if you have an underwater mortgage and are worried your monthly payments may become too expensive. To help you better understand how you can handle your underwater mortgage and avoid foreclosure, here are some options that you may wish to take advantage of.

Holding an underwater mortgage can easily leave you in a position where you’re looking for help with saving your home; luckily there is help out there. The key is to know where to look and which help is actually for you. To get a better idea of what’s out there, let’s take a look at some options.

Refinancing Options for Underwater Mortgages

Times are tricky and you want to be prepared in a case of an emergency. Your family has cut their spending habits dramatically and all your spare cash is being saved in an emergency fund. Right now you feel like you are teetering on the edge and just want to get all your ducks in a row and research your state foreclosure resources before you actually need them.

There are several resources for finding this type of information. The federal HUD agency provides a state-by-state breakdown of foreclosure resources available to consumers at http://www.hud.gov/foreclosure/local.cfm. Some of the information provided is contact information for nonprofit housing counselors, legal assistance and information on where you can file a complaint with consumer affairs. The foreclosure resources available to those in jeopardy vary from state to state. Your best bet for researching your state foreclosure resources is to start with the federal website. The links provided are non-profit and HUD sponsors many.