After the recession of 2007, many Americans have lost their jobs. As a result, they have missed several payments on their mortgage and are facing foreclosure. A foreclosure process usually starts after 90 days of non-payment of the mortgage. However, various loan modification agencies are offering foreclosure prevention services. In the month of November, 2010, foreclosure prevention workshops are going to be held in Chandler City in Arizona to help homeowners facing foreclosure. The free workshop will last for two days.
As per the Mortgage Foreclosure Prevention Act of 2009, the people who are at risk of having their homes foreclosed upon will be able to qualify for different types of services regarding a mortgage. The Foreclosure prevention services can be endorsed and supported by loan modification agencies.
On 1st October, 2008, the HOPE for Homeowners (H4H) program was started by the government, to save homeowners from getting their houses foreclosed. The program is going to end on 30th September, 2011. All the new mortgages will be insured by the Federal Housing Administration (FHA). The maximum loan amount a person may get is $ 550,440.
A person can take help of agencies offering foreclosure prevention services. The agency representative on his behalf will negotiate with the lender to refinance the existing loan. However, the new loan amount will be less than the outstanding loan balance. The lender will forgive the excess amount. On the new loan, a person will have lower interest rate, better loan terms and conditions. He can also convert his adjustable-rate mortgage to a fixed rate one. To get a new refinance loan, the documents needed to be furnished are as follows-
- W-2s of 2006-2007
- Salary stubs of last 30 days
- Tax returns of 2006-2007
- Bank statements of last 2 months
- Copy of homeowner’s insurance policy
- Copy of Social Security Card and ID
- 1st and 2nd current Mortgage statements
- Original 1st and 2nd mortgage note (signed at the time of closing)
- Most recent statements of any investment accounts (IRA, CD, pension, etc)
To be eligible to get a refinance, a person should have low FICO score, but it should not be less than 500. The person should also have to be delinquent on his existing mortgage. The previous loan has to be originated before January, 2008. His net income should not be more than $1,000,000 and his mortgage payment must be more than 31% of his gross income.
If you are facing problem in making payments toward your mortgage and searching the internet for foreclosure prevention services, log onto www.integrityfirstonline.com. They are specialist in providing services for refinance loans. They have over 30 years experience. Their extensive knowledge will help you to be financially stress-free.
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Find a reputable foreclosure prevention service that can help you stop foreclosure on your home and keep it from being repossessed. Get comprehensive information on Foreclosure Prevention Services online here at Integrityfirstonline.com.
