Home loan modification is a homeowner's best chance to avoid foreclosure and now there is additional help for Fannie Mae and Freddie Mac mortgage holders. One does have to be proactive to successfully qualify.
The government has also announced a new program as part of the Obama loan modification programs that's specifically tailored for Fannie Mae and Freddie Mac loans to help an individual avoid foreclosure.
Home loan modification is the best tool available to most homeowners to avoid foreclosure. For effective loan modifications it's essential that professional help is available to manage this sensitive and rather complex situation. Home loan modification is one, and probably the most effective way of avoiding a foreclosure. When the loan terms of a current mortgage receive mortgage loan modification to lower payments it is termed as a loan modification without having to refinance. To take advantage of home loan modification an individual has to produce a hardship letter.
Obama loan modification offered by the Federal government is totally voluntary. The lenders are offered cash incentive for providing loan modifications. There is qualifying criteria to offer help under the Obama loan modification programs.
Several other things that a homeowner can do to avoid foreclosure include things like responding to letters from their lenders; don't abandon the home and contacting a nonprofit HUD approved counseling service. Other alternatives include loan reinstatement, repayment, redemption, and short sale, refinancing, and filing for bankruptcy or deed-in-lieu of foreclosure to avert foreclosure.
Services of nonprofit credit counseling agencies and bankruptcy may also be considered. Many options exist to avoid foreclosure all these should be examined before settling on any particular course of action. However, home loan modification is one of the best alternatives and the Obama loan modification programs are supported by the US government.
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