"I was going through a divorce and was about to lose the house. I didn't want to keep the house but I didn't want to go through the foreclosure process, either. But I had no idea that there were other options open to me in my state until I contacted 1st Foreclosure Prevention. I talked everything over with a very nice loss mitigation specialist and they gave me a personal and free foreclosure consultation. They were able to actually stop the foreclosure process and I was able to stay in my home until it was sold. After the divorce, I was able to buy a new home for myself and my children."
"I struggled so hard to buy my home for me and my children and thought I got a good deal on a loan. But then I found out that the loan amount was going to go up each month. I wasn't able to afford the new payments. I had gotten a new job after being laid off, but my new job didn't pay as much as the old one. I was really figuring that I was in trouble. I wanted to save my home from foreclosure, but didn't know how. I called 1st Foreclosure Prevention and they treated me with compassion and respect. They knew all about the law, too, and how to stop foreclosure. They gave me a totally free foreclosure evaluation and explained all my options to me. Because of them, I was able to save my home from foreclosure."
"I wanted out of my mortgage in the worst way - it was the worst investment that I could make. The roof leaked and there were tons of other issues. But I didn't want to go through the foreclosure process because I knew it would screw up my credit. So when I found out about 1st Foreclosure Prevention, I figured I would give it a try. I was struggling to make payments on a piece of property that I didn't want. I got a free foreclosure consultation from them and they told me different things that I could do to get out of it. They gave me great foreclosure help and even helped me get rid of the property. Now I have a great place and no foreclosure on my record. And working with them was easy, too. Thanks, guys!"
"I really thought that there was nothing you could do to stop foreclosure once it started. I was wrong. I found out that a borrower has plenty of rights and can get foreclos"
"When we refinanced our home, we didn't think that we would be facing the foreclosure process. But there we were - after 15 years in our home, going through a foreclosure because we couldn't afford to pay the mortgage. We refinanced to get money out to finish the basement, but then I lost my foot in a snowmobile accident. I was laid up for a while and the bills mounted. Then we found that the mortgage payments were actually going up! After 15 years in the same place, it can be really tough. But my wife called 1st Foreclosure Prevention and they helped us out. They gave us free advice on how we could stop foreclosure and what to do. We were able to save our home from foreclosure with their help."
"We called 1st Foreclosure Prevention right away because a friend of ours who went through foreclosure in Florida told us about them. We knew that the sooner we acted to stop foreclosure, the better our chances. They gave us a lot of help and we were able to prevent foreclosure. Their loss mitigation specialists were great, too. They knew the laws in our state better than we did and they also had a lot of options for us that we never would have considered. Thanks to them, we are much better off. We're glad our friend recommended them and now we will do the same for others."
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.
