Foreclosure & Stimulus Package - Can The Government Stimulus Package Help You Avoid Foreclosure?

April 14, 2010 - PRLog -- The program provides about seventy five billion dollars to help homeowners who are struggling to keep their home. The federal plan is designed to accomplish two goals. First, it helps homeowners avoid foreclosure immediately as well as in the future, and second, it helps homeowners refinance their mortgages using fixed rates loans, which will lower their monthly payments.

Hector Milla Editor of the "Best Mortgage Loan Modification" website -- http://www.BestMortgageLoanModification.net -- pointed out;

“…Anyone who is having problems meeting their monthly mortgage payments can work with their lender and get the terms of their mortgage changed. The government is offering lenders incentives to restructure the terms of home loans to avoid foreclosure proceedings. Most lenders jump at the chance to restructure loans; the foreclosure process costs lenders more money, and that’s not acceptable in the money lending industry. Homeowners can now structure a deal using the federal stimulus package where they only pay about thirty one percent of their monthly gross income. Lenders actually reduce the interest rate, so the homeowner can pay more on the principal…”

The new monthly payments would only stay in place for a certain period of time, which is around five years. After that the monthly payments would slowly increase and return to amount the homeowner was paying before the mortgage was modified. If a homeowner qualifies and is able to make their monthly payments on time, they are eligible for a five thousand dollar reduction in their principal amount during the five year modification period. Lenders benefit every time they modify an existing loan under the terms of the mortgage modification program.

In order to be eligible for the government stimulus package, the amount of money a homeowner owes must be less than $729,750. After December of 2012 this aspect of the stimulus package will no longer be offered.

“…The other option in the federal package which can prevent foreclosure is utilizing the refinancing aspect of the program. If the loan is owned by Freddie Mac or Fannie Mae a homeowner could refinance their home with no equity or negative equity, if they meet certain qualifications. The homeowner must be able to make monthly payments within thirty days of the due date, and the value of the home has to be at least ninety five percent of the loan value. Any increase in equity helps increase the chances of qualifying for refinancing assistance…” added H. Milla.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net