Do you qualify for Federally-sponsored loan modifcation?
Here’s more information about how the government may assist you in your negotiations with your bank regarding loan modification. The act is called the Homeowners Affordability Act and was signed into law in February by Obama.
Making Home Affordable
Talk to your bank to determine if you qualify. Don’t trust the fly-by-night outfits that promise to renegotiate your loan for you. You will not need their help and they will likely rip you off.
The act will help you either refinance or lower your monthly payment amount. According to the guidelines, the refinancing option is targeted to homeowners who want to refinance at today’s low rates, but who have been unable to do so because the value of their home has declined so much. The option of lowering the amount paid each month is targeted to homeowners who are “at-risk” of foreclosure. Check out the website for more information about these programs.
The Federal Government will be compensating your lender for working with you. (I suppose this really means that our kids and grand kids will be compensating your lender–but that’s okay by me).
And as always, remember that filing bankruptcy may be your best option to get your bank to negotiate.