| Has the recent financial crisis in America had a | | | | be eligible for President Obama's Making Home |
| negative affect on your personal situation? Do you | | | | Affordable mortgage loan modification plan. If you |
| worry that you will not be able to pay your mortgage | | | | have a FHA loan, you should investigate a HOPE for |
| bill each month? If you answered yes to these | | | | Homeowners plan, which allows homeowners to |
| questions, you need to seek the assistance of a | | | | refinance through equity sharing. |
| financial counselor. Find out the difference between a | | | | Hope for Homeowners opens the doors to thousands |
| home loan modification and FHA refinancing to learn | | | | of individuals who previously could not be granted |
| which is best for you. | | | | financing, a possibility of obtaining it now. The |
| Hundreds of thousands of homeowners are finding | | | | plummeting value of homes has caused a drop in |
| relief from foreclosure after finding they cannot pay | | | | home equity. Traditionally if the equity was below 20%, |
| their mortgage by seeing loan modifications and | | | | the homeowner could not get refinancing. |
| Federal Housing Authority (FHA) refinance. The one | | | | The Making Home Affordable plan is not a refinancing |
| you should choose depends on who insures your loan. | | | | program; it is a modification program. Lenders |
| Call your bank and find out if the FHA, Freddie Mac or | | | | participating in the program have to follow a set |
| Fannie Mae backs your loan. These organizations are | | | | procedure in order to reduce a homeowner's |
| not lenders, but they do insure the loans so the lender | | | | payments to a reasonable amount. $75 billion in |
| is guaranteed full payment even if the homeowner | | | | incentives has been set aside to aid both borrowers |
| defaults. This way the lender can offer fair interest | | | | and lenders in negotiating mutually agreeable loans. |
| rates. | | | | This not only reduces foreclosures, it also stabilizes the |
| There really isn't a difference between a FHA loan, or | | | | economy. |
| a Fannie/Freddie insured loan. That is why many | | | | You can learn more about loan modifications and FHA |
| homeowners don't even know who their insurers are; | | | | refinancing by reading this article and then discussing it |
| they usually don't have a reason to. The only reason | | | | with a financial counselor who will help you decide the |
| to know is when a loan modification is needed. If | | | | best way to avoid foreclosure. |
| Fannie Mae or Freddie Mac insures the loan, you might | | | | |