Pittsfield, MA -- (SBWIRE) -- 11/12/2012 -- The Obama administration and the Department of Housing and Urban Renewal (HUD) recognize that homeownership strengthens the country’s economy. That is why President Obama and his administrators developed the making home affordable program, which includes loan modification and refinancing to help troubled homeowners remain in their homes. The HARP (Home Affordable Refinance Program) plan offers these hard-working people the chance to draft an entirely new mortgage loan to stave off the possibility of their lien holder foreclosing on their homes. It with this government-sponsored help that one can refinance to stop foreclosure and here’s how to go about it.
Mortgage Loan Refinance to Prevent Foreclosure
The way to refinance to stop foreclosure is this: Apply for the HARP plan through one’s mortgage servicer. If the servicer participates in the HARP plan, it will help an individual with all of the paperwork involved with the application. The borrower must be employed, must have evidence of a financial hardship, and must be able to provide documents indicating that he will be able to make the refinanced payments. One must also have a reasonably good credit score. The property involved can be owner-residing or a rental home, of 1-4 units. Most importantly, the mortgage loan must be owned by Fannie Mae or Freddie Mac. Check their websites to find out if one is unsure about which entity owns one’s loan.
The HUD programs that refinance to stop foreclosure are similar to HARP. They also offer some other ways to lower one’s mortgage payment, such as the principal reduction alternative. This option is designed to help people whose homes are now worth considerably less than one is paying for it by urging mortgage servicers and investors to reduce the amount one owes. They also supply assistance to those who are unemployed with the home affordable unemployed program (UP). This plan gives a temporary reduction or suspension of one’s mortgage payments for up to one year while one is looking for work. There is also the FHA (Federal Housing Administration) forbearance for unemployed workers plan, which requires mortgage servicers to extend the forbearance period to 12 months for unemployed homeowners.
Credit-yogi, an online marketing company located in Pittsfield, Massachusetts, has much more information on refinancing to prevent foreclosure, and is happy to share it with all interested parties.