Making Home Affordable Programs: Getting a Loan Modification While Unemployed is Not Impossible
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The Home Affordable Foreclosure Alternatives (HAVA) Program was designed by the Obama administration as a complimentary program to their making home affordable programs and Modification Program. Many people that applied to the modification program were being systematically declined and needed an alternative to save their homes from foreclosure. The HAVA program was suppose to streamline the short sale process creating an opportunity for the approximate 700,000 home owners that have been denied mortgage modification. To date, this program established in the early part of 2009 has helped a mere 342 home owners. A number so low that the program is beyond ineffectual, it is basically nonexistent.
How To Save Your Home- The best option for many homeowners is to try and work out a mortgage modification with their mortgage holder or through making home affordable programs. This process basically involves the note holder collecting financial documents to make sure the borrowers can still pay the loan without causing financial difficulties. This is just like a normal loan application. Then based off the financial worthiness of the borrower the lender may choose to modify the adjustable rate mortgage into a fixed rate or temporarily stop the adjustment of the mortgage for a set period of time.
It may be in your best interest to hold off on applying for a modification until you have a job interview or opportunity on the horizon. Your lender loses money on loan modifications one way or another and an unclear future about your ability to pay your mortgage will affect their decision to approve you or not. It is possible to apply for a loan modification 30 days prior to your scheduled foreclosure date, so do not be afraid to postpone until your financial future looks a little better.
Government Programs- Your second option is to use the new FHA Secure program offered through the federal government. The FHA Secure will let homeowners refinance up to 97.75% of their homes current appraised value, even with late payments. The only catches to the program are the mortgage has to have been paid on time and the late payments can only have occurred after the mortgage rate adjusted.
The failure of this program has rippling effects in the already devastated real estate market. Homes that end up in foreclosure are often left empty for months. These empty properties degrade, provide homes for rodents and deteriorate the neighborhoods they are in, causing further drops in property values. The cycle continues with each turn creating more issues. The short sale process was created to help avoid these problems and keep properties lived in and maintained. However, the process is often too grueling and long to be effective. Lenders that do approve the sale often drag on the transaction causing buyers to abandon the sale for a home they can move into quickly. This causes sellers to become financially devastated and the home ends up in foreclosure anyways.
Article Source: Articlelogy.com
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