Homeowners can avoid foreclosure and mortgage default be refinancing or getting a home loan modification through President Obamas housing stimulus plan. Millions of homeowners can use this plan to see savings of hundreds of dollars per month on their mortgage, and more importantly, save their home. Here is what you need to know to use this plan for yourself:

-Home loans which were signed prior to January 1st 2009 are able to use this mortgage bailout plan for their situation. Mortgages which were closed on after that are eligible for an $8000 tax credit, but that is different.

-Mortgages from Fannie Mae or Freddie Mac and are over 31% of a homeowners income, are eligible for a home loan modification. This modification will lower the homeowners monthly mortgage payment to less than they are paying now, or lower than 31%. This is a savings of 20% or more for a lot of homeowners.

-Homes which have dropped in value, can now get approved for mortgage refinancing or modification with this stimulus plan from the Government. Homeowners all over have seen their property values drop due to foreclosures, a bad housing market, tightened lending, and bad mortgages.

-Mortgages which exceed the homes market value by as much as 5% will still qualify for home loan modification or refinancing. Previously, a homeowner who owed more than the homes worth would never have a chance at approval.

Foreclosures and mortgage defaults can easily be avoided if a homeowner just takes action. The Government put this plan in place to help struggling homeowners, and if you are, you need to take control of your situation and get a mortgage refinancing or home loan modification through this plan before time runs out. You do not want to lose your home if you do not have to, and now you have an option.

By: Michael Petrone

New programs are in place which allow almost every homeowner facing foreclosure the chance to save their home. Mortgage refinancing and modification packages are now available which help homeowners in nearly any financial situations get a more affordable mortgage. Many homeowners are struggling financially and can still use this plan for themselves.

Home loans everywhere are at risk. Millions of homeowners are unable to pay their mortgage anymore due to a loss of job, increased payments, financial hardships, or lots of other problems. This is causing many homes to be lost to foreclosure or mortgage default, and bringing down entire neighborhoods. Something needed to be done, and President Obama answered with this amazing stimulus plan for homeowners. Now, there is some hope for homeowners and a chance to save their home.

There is over $75 billion dollars in funding for this plan which is there to help homeowners. This money will make mortgage lenders and banks more likely to approve you because they will be getting most of this money. The money mortgage lenders and banks get to help homeowners covers some of their risks when approving an at risk homeowner. Also, this money will cover all costs and fees typically associated with refinancing.

With struggling homeowners being the main concern, getting help for a home loan is easier than ever. Now, there are a lot of new options and programs which can truly benefit millions of homeowners. A homeowner needs to contact their mortgage lender, or a competing lender, and see what they can do for you. Ask about the housing stimulus plan, and how it can help you. This program is here to help. You need to do your part and ask for the help you require.

By: Michael Petrone

Nobody plans to fall behind with the payments on their mortgage, but life has a funny way of throwing difficult times at us, whether it be unexpected medical bills, or loss of employment, these things have a way of coming up when we least expect them and normally we are not prepared for them! If we have no money stashed away for a rainy day, being able to afford these unexpected bills or expenses and keeping the daily running of our house up, including paying loans or mortgages, proves impossible. Bills go by unpaid, things that would seem urgent and important before, may now go down in their ranking of importance. This is where many people end up defaulting on their mortgage.

Default on a mortgage is where required payments are not made on time or not paid at all. It can also be not complying with certain rules and regulations that are set out before the contract is made.

It is really important to try and make all of your payments on your mortgage in time. We’ve all heard the warning “if repayments on your mortgage are not kept up, you run the risk of losing your home” Well, it’s true! If, however, for whatever reason, it is not possible to keep up your payments, there is a Mortgage Default procedure that you must go through.

A default on the mortgage is where a payment is missed, and is more than thirty days late. It will be noted on the clients credit report and affects their credit score negatively. When a number of mortgage payments is missed, usually about three or four, the client is classed as being in default. If you are running behind on your payments, the best thing you should do is contact your mortgage provider and tell them the news. Many loan and mortgage companies will be happy enough to try and work out some sort of agreement with you in order to help you out of your difficult position. That is, however, if you do inform them and you don’t bury your head in the sand! The longer you wait to inform them, the worse it will end up being for you, and the less likely they are to want to negotiate terms. Missing three or four payments, when you are referred to as being in default, most mortgage companies will need the complete payment of the missed payments in full as well as paying any late fees you may have accumulated.

If you are unable to pay the balance off in full, the mortgage company has rights to start foreclosure proceedings. There are some ways in which you can prevent or try to delay the foreclosure proceedings including selling your home, declaring yourself bankrupt or loan modification. Again, these things can only really be arranged if you talk to your mortgage provider early enough.

If there is no agreement reached, a foreclosure notice will be given, generally by mail. The letter will state a period of time in which you can pay off the missed payments and reinstate the mortgage. If this isn’t done, you will then be given a notice of foreclosure sale, where your property will be put up for auction and bought by the highest bidder. You must then move out of your house within a set period of time or face being evicted!

Obviously, this isn’t the most pleasant experience in the world, so if you do get yourself into this position, speak to your lender as soon as possible to see if there is away you can negotiate terms and not lose your house due to missing payments. The most important thing to remember is to try your very hardest to keep up repayments with your mortgage!

By: Jim Power