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Digital News Report – The government loan modification program is designed to help lower the foreclosure rate. While not every homeowner can qualify for a loan modification, there are other aspects to the program that can benefit those in need.
“If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable,” the government administrators said in a statement this week.
The government is now providing a questionnaire to help homeowners qualify themselves for the program. “Is your home your primary residence?” the first question asks.
The program also provides help in refinancing. With historical low interest rates, distressed homeowners can benefit from the “Home Affordable Refinancing” section of the program.
It can be difficult to modify a first mortgage when a second lien is encumbering the property. The Second Lien Modification Program (2MP) can help Americans lower payments on their second mortgage when their first mortgage is modified under the Home Affordable Modification Program.
Finally, if the homeowner does not qualify for a modification or other help, they may take advantage of the Home Affordable Foreclosure Alternative Program. This can help the borrower avoid the negative effects of foreclosure. They can complete a short sale or deed-in-lieu of foreclosure.
All of the programs are free to the homeowner.
By: Tina Brown