Rob K. Blake

Ease Your Way Out of Heavy Mortgage Payments: Take Advantage of Government Incentives for Homeowners

Over the years, it's the real estate industry which seems to have suffered the most as a result of the global financial crisis. And it's the individual homeowners who are experiencing the blow. If you are still struggling to make ends meet, you have a family fed and you are worried about losing your home, it's time to learn what your other options are.

The Top 5 Incentives Offered by the Government to Help Homeowners Out with their Mortgage Loans  

In an effort to revive the real estate industry, the federal government has launched several programs to aid homeowners with their mortgage loans. If you are a homeowner who is having problems paying off your mortgage loan or applying for one, here are the top 5 programs that you should look at as an option: 

1.             American Recovery & Reinvestment Act of 2009

Under this act, individuals who took advantage of mortgage loans provided by the Federal Housing Administration are eligible for refinancing their existing mortgage.  The refinancing was made possible through the Economic Stimulus Act of 2008.

2.             Helping Families Save their Homes Act

As a response to most homeowners having problems paying off their mortgages as a result of the economic problems, the HOPE for Homeowners Program was amended. For this, those who are having problems paying off their mortgage loans will be granted a reprieve. The financial relief comes in the form of reduced origination fees, incentives to mortgage service providers and reduced administrative burdens. Also, any new loan requirements will be made consistent with the standard loan practices set by the FHA.

3.             Home Affordable Refinance Program

This financial assistance offered by the government is designed for borrowers who have a solid payment history on an existing mortgage. Under this federal program, homeowners will be made eligible for refinancing even if the value of their home is less than their current mortgage debt. You are only qualified for this program if your mortgage loan is owned or securitized by Fannie Mae or Freddie Mac.

4.             Home Affordable Modification Program

The Home Affordable Modification Program was created to modify the existing mortgage payment of a homeowner. As a result, the one who obtained the loan can avoid foreclosure and better afford their monthly payments.
To take advantage of the Home Affordable Modification Program, the mortgage should have originated on or before January 1, 2009. There is also a certain amount that the home loan should not exceed, and the house should be an owner-occupied primary residence. The good news is that these loan modifications will be made available until the last day of December in the year 2012 – so you can still make inquiries if you are having problems paying off your home loan.  

5.             HOPE for Homeowners Program Finally, there’s the HOPE for Homeowners Program. Under this plan, homeowners who are struggling to pay their monthly mortgage can refinance their existing mortgage. The refinancing will be under the FHA-insured mortgage that you can afford. If your mortgage originated on or before January 8, 2008 and you made a minimum of six full payments on your existing first mortgage, you might just qualify for the HOPE for Homeowners Program. You need to hurry up, too, because the program will only last until the end of September, 2011.  A

All in all, choosing which among these federal government-initiated programs will suit your situation is the best thing to do. If you know that you qualify for any of these programs, you are bound to ease some of the pressure off from paying your home loan, and not risk losing it for foreclosure.

Article Tags: Having Problems Paying, Home Affordable Modification, Take Advantage, Mortgage Loans, Having Problems, Problems Paying, Homeowners Program, Home Affordable, Existing Mortgage, Affordable Modification

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