Government Credits
Government Credits to Help You Avoid Mortgage Foreclosure
Government Credits - There are currently a variety of foreclosure programs offered by the government to assist distressed homeowners who are facing foreclosure or may face foreclosure in the future. To figure out which program is most applicable for one's foreclosure situation, a person should learn about the requirements of the individual programs. Some programs, such as the Home Affordable Unemployment Program, require that you be unemployed in order to receive financial assistance from the government. Here are some of the top programs that are available from the government and that can help you cut down on your monthly mortgage payments.
Principal Reduction Alternative - The Principal Reduction Alternative (PRA) program allows homeowners to reduce the total amount of the principal balance of a mortgage loan. To be eligible for this program, a homeowner must owe more on a home than its current value. One must also occupy a home as the primary residence. Other requirements include that a homeowner is suffering from a financial hardship and is delinquent.
Home Affordable Unemployment Program - The Home Affordable Unemployment Program is aimed at those homeowners who are currently unemployed. Through this program, an unemployed homeowner can obtain a temporary reduction in his or her monthly mortgage payments. A homeowner may also have his or her mortgage payments suspended for at least 12 months during the process of trying to find a new job.
Second Lien Modification Program - In the current foreclosure crisis, many homeowners have resorted to taking out a second mortgage on a property. If this second mortgage has become too difficult to repay, then homeowners may modify the terms of this mortgage under the 2MP program. To be eligible for this program, a homeowner may not have missed more than three consecutive monthly payments in a HAMP program. The second mortgage can be completely reduced or eliminated through this program.
FHA Second Lien Program - This program is aimed at mortgages that are currently underwater on a home. Through this program, a second mortgage that is underwater may be refinanced. The total value of the new mortgage can not exceed 115% of the value of the current value of the home.