"When we found out that our house was worth a lot less than what we paid for it, we were pretty upset. We thought we had made an investment when we purchased our property, but as it turns out, it was a poor investment. We wanted to get out of the house but couldn't even sell it. We thought about just giving it to the bank, but they didn't want it. We had no idea what to do, but then I found out about 1st Foreclosure Prevention. They were able to give us the foreclosure help that we needed and even helped us with the short sale process. We were able to walk away from a bad investment with hardly any damage to our credit thanks to them."
"After my husband died, I couldn't the mortgage payments at all on our home. I didn't know what to do and had tons of medical bills. I was at my wits end and was struggling just to get up in the morning because the foreclosure was making me so depressed. I had no idea what to do and was just going to let the bank take the house since I couldn't afford the payments. A friend told me about 1st Foreclosure Prevention. I contacted them and they gave me a free foreclosure evaluation and told me what I could do to keep my home. They negotiated with my lender for me and helped me stop foreclosure. Best of all, they relieved my mind from worry. They were very nice and really knew how to give me foreclosure help. Thank you."
"We were really behind on our mortgage and getting calls all of the time from the lender who wanted their money. We didn't know what to do and thought that we would have to go through a foreclosure. We knew that this happened to other people, but didn't think it would happen to us. But I had been sick for a while and off work. The medical bills took all of our savings and we even had to refinance to pay off the hospital. We contacted 1st Foreclosure Prevention and were really impressed with their service. They were able get the calls to stop as well as the foreclosure process while we worked with them on all of our options on what we wanted to do. We decided to sell our home and move on. Thanks to them, we have another home and are not struggling any more."
"I was so stressed out in trying to figure out how I was going to stop foreclosure from happening to me that I actually had to see a doctor for stress. I struggled hard to buy my condo and wanted to keep my home and save my home from foreclosure. But it was getting difficult because the mortgage amount kept going up. I had an adjustable rate mortgage and the rate kept rising. On top of that, I lost my job and got behind in payments. I thought that this was it, I was not going to be able to stop foreclosure. Then I found 1st Foreclosure Prevention. They were able to stop foreclosure from happening to me and allow me to keep my condo. I am now all caught up, have a new job and happier than ever thanks to them."
"We were like most other folks, I guess. Facing the foreclosure process and losing our home because we were out of work and owed too much on the property. You always hear about this happening to other people but never think it would happen to you. We were just going along with everything, trying not to think about it, but then my husband got an idea to call 1st Foreclosure Prevention - a company he had heard about that could stop foreclosure from happening. I figured it was a scam of some sort, but after we both got their free foreclosure consultation and found out about their company, we were impressed. We weren't like most other folks, at that point. We had foreclosure help and were able to stop foreclosure from happening to us."
"I couldn't sleep at night because I was so worried about my mortgage and what was going to happen to me and my kids. I had been working two jobs to try to keep up on the mortgage payments since my divorce and there just didn't seem to be an end in sight. Then I lost one of the jobs when the place closed down. A friend of mine told me I was better off to do what I could to stop foreclosure before it started, so I contacted this place that I found online, 1st Foreclosure Prevention, and they gave me so much foreclosure help! I couldn't believe that they could be so nice and caring. They took it all off my shoulders and I was finally able to sleep. They saved my home from foreclosure."
Home / You Can Save Your Home with Loan Modification
You Can Save Your Home with a "Making Home Affordable Loan Modification
President Barack Obama created a stimulus plan in March of 2009 with the goal of helping homeowners avoid foreclosure and stay financially afloat. The program has allocated $75 billion in funds which can be used to assist anywhere from 4 to 9 million homeowners who are likely to default on their mortgages, and are in need of foreclosure prevention.
New options are available to most homeowners including both loan modification and refinancing alternatives. The goals of the Making Home Affordable program can be summarized in 4 main points:
1) Keep Monthly Payments Affordable
A main objective is ensuring that homeowners continue making a monthly payment, even it if needs to be modified. This way, they are in less danger of losing their home, and lender’s risk is reduced in losing the stream of income altogether. Many borrowers are under water on their mortgages, and this program means they too will be eligible for loan modification, giving them a chance to save their homes. The government is bearing risk for both borrowers and lenders to attempt to give them a chance to stay in business and stay in their homes.
2) Achieving a Lower Monthly Payment
The new loan payment is calculated so that is does not exceed 31% of a borrower’s gross monthly income. In this way, the government has attempted to create a uniform methodology for determining what any one individual will have to be responsible for in terms of their mortgage payment. In addition, mortgage interest rates are lowered to as little as 2%, or repayment periods are extended, giving borrowers a break on the monthly outlay they are required to make.
3) Cash Incentives Create Demand
Many mortgage lenders and banks are eligible to utilize this program to service a wider range of clients, but mostly to provide a much-needed option for homeowners at risk of foreclosure. The government will compensate banks for each borrower they successfully help mitigate foreclosure, every year for 5 years. The one stipulation is that the borrower remains up to date with their payments. Additionally, cash subsidies are granted to homeowners in the amount of $1,000, every year for up to 5 years, as long as they pay their mortgage bill in full each month, on time.
4) Casualties of a Weak Economy
Many homeowners have lost their jobs and are suffering from reduced incomes and other financial worries. The government aims to encourage even those who are at risk of default, or are already delinquent to take advantage of the Making Home Affordable program. The only requirement is that the borrower provides a letter detailing and verifying the reasons for their financial hardship. In fact, if a lender knows more details about an individual borrower’s financial situation, it could lead to even more favorable loan modifications.
