Along with the economy and the financial sectors, the housing market is in a free fall and home mortgage lenders are tightening the purse strings. In the foreseeable future and recent past, experts estimate nearly three to four million people (1) will be unable to avoid foreclosure and will lose or have lost their homes due to the current recession. These are alarming numbers, especially when coupled with the fact that this statistic is projected to pass the number of homeowners who lost their properties during the Great Depression.
As most mortgage payments can be pretty high that extra amount that people have to pay monthly can become difficult to complete. This means that many people end up missing on mortgage payments and delay their payments leading to further fines. Since banks are now becoming strict and are enforcing foreclosure to save themselves from any financial damage, President Obama's administration has come out with two new plans to forestall and avoid foreclosure with the help of the mortgage reduction program 2010.
A word of caution: Even though your mortgage loan has become an unbearable burden, allowing the bank to foreclose your home can hurt you badly. Losing your home to foreclosure is only the start. A foreclosure would spoil your credit report for quite a number of years, making it almost impossible or at least quite costly to buy a new home. If the sales proceeds of your home don't compensate for your loan, your lender might file a lawsuit against you to get back the outstanding balance.
Repayment Plan - This service is only offered by home mortgage lenders to homeowners who are delinquent on their monthly payments. With this process, home mortgage lenders will add a portion of the past due balance on the mortgage to the monthly payment in order to pay off that late balance in a shorter period of time without paying extra interest. This option is generally offered to borrowing homeowners who have experienced a significant loss of income (or an increase in living expenses), but still have enough monthly income to correct the delinquency and re-instate the loan. Repayment of the loan must occur within the duration of a scheduled monthly plan, which can be achieved either through gradual repayment of the delinquent amount or through both repayment and loan modification. Short Sale - With this process, home mortgage lenders and homeowners agree on selling the house for less than the balance on the mortgage in order to pay off the debt and avoid foreclosure. These circumstances are usually related to the current real estate market and the borrower's financial situation. Short sales avoid foreclosure and prevent subsequent damage from appearing on the customer's credit score for years into the future, but the seller will owe income taxes on any amount the bank forgives on the mortgage as part of the short sale.
If you don't fulfill these conditions, there is another plan in the mortgage reduction program 2010, in which you can use to save your property. This plan is for even those properties that are not self-occupied. This plan can help you reduce your monthly mortgage payments by up to 30 percent. In this plan, your servicer will help you out by formulating a way to reduce your payment and figure out a solution in the forbearance period that you get, which is a maximum of six months. These government mortgage reduction program works on the basis of incentives for both the borrower and servicer.
As most mortgage payments can be pretty high that extra amount that people have to pay monthly can become difficult to complete. This means that many people end up missing on mortgage payments and delay their payments leading to further fines. Since banks are now becoming strict and are enforcing foreclosure to save themselves from any financial damage, President Obama's administration has come out with two new plans to forestall and avoid foreclosure with the help of the mortgage reduction program 2010.
A word of caution: Even though your mortgage loan has become an unbearable burden, allowing the bank to foreclose your home can hurt you badly. Losing your home to foreclosure is only the start. A foreclosure would spoil your credit report for quite a number of years, making it almost impossible or at least quite costly to buy a new home. If the sales proceeds of your home don't compensate for your loan, your lender might file a lawsuit against you to get back the outstanding balance.
Repayment Plan - This service is only offered by home mortgage lenders to homeowners who are delinquent on their monthly payments. With this process, home mortgage lenders will add a portion of the past due balance on the mortgage to the monthly payment in order to pay off that late balance in a shorter period of time without paying extra interest. This option is generally offered to borrowing homeowners who have experienced a significant loss of income (or an increase in living expenses), but still have enough monthly income to correct the delinquency and re-instate the loan. Repayment of the loan must occur within the duration of a scheduled monthly plan, which can be achieved either through gradual repayment of the delinquent amount or through both repayment and loan modification. Short Sale - With this process, home mortgage lenders and homeowners agree on selling the house for less than the balance on the mortgage in order to pay off the debt and avoid foreclosure. These circumstances are usually related to the current real estate market and the borrower's financial situation. Short sales avoid foreclosure and prevent subsequent damage from appearing on the customer's credit score for years into the future, but the seller will owe income taxes on any amount the bank forgives on the mortgage as part of the short sale.
If you don't fulfill these conditions, there is another plan in the mortgage reduction program 2010, in which you can use to save your property. This plan is for even those properties that are not self-occupied. This plan can help you reduce your monthly mortgage payments by up to 30 percent. In this plan, your servicer will help you out by formulating a way to reduce your payment and figure out a solution in the forbearance period that you get, which is a maximum of six months. These government mortgage reduction program works on the basis of incentives for both the borrower and servicer.
