New Bank Policies

Recently, the government announced that, to provide relief to homeowners, mortgage giants Fannie Mae and Freddie Mac would offer qualifying homeowners the opportunity to change (that is, improve) the terms of their mortgages if they’re at least 90 days behind on their payments. This was welcome news for those homeowners facing possible foreclosure who had already seen their credit destroyed through late and missed mortgage payments.

But for those homeowners barely keeping their heads above water –that is, still paying their payments on time– this new policy didn’t offer any real assistance. Until recently. Now, banks like Citigroup and JPMorgan Chase are offering mortgage terms adjustments to homeowners even if they’ve missed no payments at all. Before you fall behind on your payments, you can contact your mortgage company to discuss the terms of your loans. This policy has been administered through many banks throughout the country, especially in the areas hit hardest by the housing crisis, Arizona, Florida, and California among them.

Qualifying for Assistance

Sound like a good option for those of you struggling to get your mortgage payments made on time? It is. But only if you qualify. Unfortunately, though the policy of offering assistance to struggling homeowners is spreading, there are many requirements to be met in order to qualify for assistance. The most important of these is that you be hugely strained by your mortgage financially.

The kinds of people who qualify for mortgage term adjustments are people who have seen or are about to see a change in interest rates that will make it impossible for a homeowner to keep their head above water. Or those who have recently lost an income or seen it drastically reduced. The bank will look at whether or not you are truly overburdened by your mortgage payments. And they’ll be strict about what they consider to be an overburden. In essence, if you’re not seeing 40% or more of your monthly income go to your mortgage payment, you won’t be approved for mortgage assistance. And even then, there’s no guarantee that you’ll get help.

How to Get Assistance

Many banks have established special phone lines to deal with clients looking to negotiate new terms for their mortgages. In order to get help with your mortgage, you’ll need to locate the correct department at your bank (if your bank offers this option at all– not all of them do). Ask for a loans modification specialist, or even better, take some time out from surfing internet dating sites and check out your bank’s website. Many banking websites contain information to help distressed homeowners.

When you finally reach the correct department within your bank to adjust the terms of your loan, the hard part will begin. Banks are struggling, too, and they do not want to adjust your loan any more than they have to– and if they don’t feel they have to, they won’t help you at all. So you need to provide a lot of evidence to show that you are in financial distress. In general, banks will request your recent pay stubs, tax returns, and even a letter detailing what has happened in your life or with your finances to necessitate a change in the terms of your mortgage. If they don’t feel you’re having a hard enough time with your mortgage payments, they’ll turn you down flat. So be ready.

Most people requesting help with the terms of their mortgage will be turned down. But those that do qualify for assistance will see a small monthly change in their mortgage payments that may make the difference between being able to make their payments and losing their home. While you shouldn’t expect banks to make any changes to the final principal owed on your home (they want their money, in the end), qualifying homeowners will see adjustments made to their interest rates or temporary adjustments to their principal. And for some homeowners, these small changes can make all the difference.

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Although the largest financial institutions in the country have agreed to a moratorium in foreclosures, it is just temporary. So you still have to find ways in which you can manage your mortgage payments better and, more importantly, prevent losing your home today or in the future. Below are some of the loss mitigation programs that may be available to you.

Repayment Plan is one of the foreclosure assistance programs that cater to people who have encountered short-term financial difficulties. If you were unable to pay your mortgage for a month or two because you became suddenly sick or you had an unexpected and important expense to pay, you can avail yourself of this repayment option.

Just be sure to contact your lender or loss mitigation professional to know the guidelines for applying for this type of assistance program.

Short sale is also another option for people who are already desperate and do not have any capacity to pay their home loan. With this loss mitigation option, you will need to sell your home at a discount in the hopes that apart from paying off your debt you will still have some money to keep for yourself.

However, you need to realize that if you choose this over other foreclosure assistance programs, you might need to pay certain taxes and you can still end up losing your home and having no money. So before you consider this option, you might want to really think it over.

Of all the foreclosure assistance programs, one of the most popular is loan modification. The aim of this program is to make payments for your home loan easier for you by negotiating for permanent changes in the terms of your loan. Some of the things you can ask the lender to modify on your loan are the payment schedule, the amount of your monthly payments, and even the interest rate that is applicable to your mortgage.

However, in order to get approved for mortgage modification, you need to show your lender that you can really afford the new payment terms.

Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.WeSaveHomes.com

John and Mary were an average couple. Both had jobs, a nice home, two cars, and were doing pretty well. However, John’s company was getting squeezed by the economy, so they laid him off, and at the same time the interest rates on their adjustable rate mortgage jumped, making their payment more than ever before in a time when they had less income than every before. Soon they were missing payments and facing foreclosure, frantically looking for foreclosure assistance solutions to help.

When you’re looking for foreclosure assistance solutions, there are several things to keep in mind. You want to make sure you choose the right solution for your needs, so here are several things to look for when searching for a foreclosure solution.

- Look for an Option That Will Help You Save Your Home – When you are weighing the various solutions available to you today, look for an option that will help you save your home if possible. This is not always possible, but the best choice.

- Make Sure You’re Not Getting Involved in a Scam – There are many scams out there, and when you’re trying to find the right foreclosure assistance solutions, keep your eyes open for scams.

- Don’t Pay for Help – There are many solutions out there and you shouldn’t have to pay for them. So, if they are asking for payment, this is not the right solution for you.

Solution #1 – Talk to Your Lender – Probably one of the best foreclosure assistance solutions to employ if you are facing foreclosure is to start out by talking to your lender. You need to let them know what the problem is. They don’t want to foreclose and can often offer you other great solutions to help.

Solution #2 – Loan Refinancing – Loan refinancing is another of the many foreclosure assistance solutions that is a great option for you. When you have an adjustable rate mortgage, this is definitely a top solution, since you can often save quite a bit in interest. This is a top way to avoid foreclosure but is not always an option.

Solution #3 – Forbearance – Forbearance on your loan can help you reduce your mortgage payments or even delay them for a time period without legal action. If you have dealt with a job loss or extreme financial problems, this is one of the top foreclosure assistance solutions to check into.

Solution #4 – Pre-Foreclosure Sales – If you are not interested in keeping your home and you’d rather make sure that you save your credit and avoid a foreclosure, pre-foreclosure sales can provide you with an excellent option.

Solution #5 – Repayment Plan – Some companies will offer special repayment plans that are great foreclosure assistance solutions. This is a very common method used and includes your lender allowing you to repay the past due amounts by adding part of it to your monthly payment each month so you can get caught up.

Solution #6 – Short Sale – A short sale is not one of the top foreclosure assistance solutions, and it means you’ll be giving up your home, but it is a good option as a last resort. It allows you to sell your home for less than the mortgage amount, but you’ll have to get your lender to agree to it.

Solution #7 – Deed in Lieu – Last of all, deed in lieu is another one of the many foreclosure assistance solutions available, but there are some big disadvantages. While it does help you to avoid foreclosure, it can still damage your credit.

These are just a few of the top foreclosure assistance solutions options that you have today. It’s important that you understand your options and how they work so you can make sure that you don’t get caught off guard by foreclosure. There is help for you if you are dealing with a possible foreclosure, so take the time to find out more about these solutions that are available to you.

Are you feeling tired of searching, emailing and falling for solutions to solve your foreclosure problem but getting no results? There are many more powerful solutions availabe along with the help and assistance to implement them located at Peter Baptiste’s blog. Just go to the Foreclosure Doctor Online and get help fast.