Explanation of Government Foreclosure Prevention Program

The current administration recently rolled out a federally funded program called the foreclosure prevention program. The foreclosure prevention program could potentially help millions of Americans who are struggling to pay their mortgages.

The economic adversity in Chandler, Arizona that we are currently facing has caused the loss of thousands of jobs each month. This uptick in unemployment is one of the greatest reasons for the foreclosure prevention program.

The drastic need for a foreclosure prevention program also came to fruition because of the crash of the housing market and property values. With property values being just a fraction of the loan values, foreclosure prevention is needed now more than ever.

The foreclosure prevention program costs several billion dollars. Foreclosure prevention in the form of the government program is aimed at helping about nine million property owners and is effective until 2012. This foreclosure prevention program allows home buyers to adjust the terms of their mortgage, but they are only allowed to do it once.

The first step in the success of this foreclosure prevention program is to get the home owners mortgage payment to be less than 30 percent of their income. This foreclosure prevention technique is much like a loan modification that you would do with the bank. Basically, it is foreclosure prevention because it makes the terms of your mortgage payment comfortable for you and acceptable for the bank. There are several criteria to qualify for the foreclosure prevention program. See if you qualify based on the list below….

In order to quality, the home owner must have the following.
- Obtained your mortgage before January 1, 2009.
- mortgage that is less than $729,500
- provide tax returns and pay stubs
- Sign a statement of hardship

So long as the mortgage interest rate stays high enough, the lenders will follow a specific plan to help you lower the total payments considerably for you. Following that, the administration will do its thing with the foreclosure prevention program and your payment will be lowered to thirty percent of your income or less, which will make it affordable for you to pay.

That interested rate mentioned above is guaranteed for a five year term in Chandler, AZ. After the five years are up, the rate can rise by one percent, which won’t be much. It will rise every year until it reaches either the current rate or the previous rate that you had, which ever comes first. Lenders are going to receive money for each of the loans that they refinance through the foreclosure prevention program.

If this government program seems complicated for you, you might want to contact a real estate expert who can give you advice in foreclosure prevention. However, you may also consider a short sale. It can provide greater relief for some than this complicated government program.

For more information on foreclosure prevention go to: Short Sale Arizona