Exploding foreclosure rates have continued in 2009 in the U.S., especially in California, Nevada, Florida and Arizona. Under the Bush Administration there were programs initiated to help homeowners facing foreclosures starting in 2007, such as FHA Secure, Project Hope and others that did not appear to produce much fruit. Foreclosures continue to spiral out-of-control up until this day.

Now, President Obama and his Administration has rolled out what is sure to be a few of many programs to address the run away foreclosure rates and help about 9 million homeowners save and keep their homes. One such program launched this month is the “Making Home Affordable” Program. The “Making Home Affordable” program, is a two-prong approach for the foreclosure crisis that involves loan modification and refinancing programs for struggling homeowners. The loan modification approach is designed to bring lenders and borrowers together to modify the terms of their loan by lowering interest rates to as low as 2 percent for five years. After the five years, rates will rise to about five percent until the loan is repaid. For eligible borrowers, they will have to provide their most recent tax return and two pay stubs, as well as an “affidavit of financial hardship” to qualify for the loan modification program, which runs through 2012. Making Home Affordable modification program guidelines are as follows;

The home must be an owner occupied, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law). Continue reading Loan Modification to Save Your Home