Many people have been hit hard by the economy. Some are out of work and many are struggling to just make their mortgage payments. Living on unemployment is very difficult for most people because it only pays a small percentage of the income that you are used to . Keeping the lights on and eating become high priorities and many people just stop making their mortgage payments because the money just isn’t there. They ignore the late notices and keep hoping that they will get a job or that a miracle will happen. Don’t do this! If you want to avoid foreclosure, then you need to contact your bank and let them know what is going on. Many are now willing to work with you as much as possible because of the sheer number of homes that are being foreclosures in a market where homes aren’t selling.
Stop foreclosure by taking advantage of the programs that have been placed in effect to help stabilize the housing market, especially the program Making Home Affordable.
Part of this program, The Home Affordable Modification Program, was passed to help with payments. This program will lower your mortgage payment to 31% of your verified gross income. This is a huge savings to many homeowners!
Another part of the program, the Principal Reduction Alternative helps those whose homes are not worth significantly less than what they were originally mortgaged for. This program encourages banks to actually lower the amount owed…forgiving part of your loan, in essence.
Second Lien Modification is also part of the plan. It provides for help when people have a home equity line of credit that they still owe money on.
There are other options as well. Being able to refinance your home, under one of these plans, is making it easier for home owners to lower payments and try to stay current on their payments. This helps to stop foreclosure for many people who would otherwise be facing a foreclosure notice. If you can avoid foreclosure, this is the best possible scenario for both you and the bank. They don’t want the home back; they aren’t real estate agents or property managers. They don’t want to be either of those things. Your banker would much rather work with you and keep you in your home if that is possible. Call them and don’t just ignore when your mortgage payments are late.