If you are in trouble with your mortgage payment, you may be applauding recent government programs to help you negotiate a loan modification. You may have already been helped through Making Home Affordable or through a similar program at your bank. Now with recent program changes that encourage principle reduction and offer help making payments when you are unemployed, you may feel assured that you will make it through a tough time with your home intact.
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Times are tough, and some homeowners feel defeated by impending foreclosure. Some try to work out a solution with their bank. Others try to do a short sale.
The dilemma today for many considering loan modifications or even considering whether to move from the trial to the permanent phase of the process is whether it is worth it in the long run.
Loan modifications would have a better chance of working if the principle was lowered according to a study by the New York Federal Reserve Bank.
Fannie Mae or Freddie Mac are halting foreclosures until the New Year. The two week break will allow families to celebrate the holidays without fear of eviction. This gives you more time to avoid foreclosure.
The most recent report released December 10 indicated that the program is not only on target but ahead of schedule in terms of people who are at some point in the process.