Keep Your Home With The Help Of The Government

Because of the current state of the economy and housing market

, millions of Americans are scrambling to come up with ways to keep their homes. To tackle this ever-growing issue, in March of 2009, the Obama Administration added the Making Home Affordable Plan to its comprehensive Financial Stability Plan in the hopes of helping homeowners modify their current mortgages.

In its campaign to promote the initiative, which is available for loans that originated before 2009, the U.S. Department of Housing and Urban Development (HUD) says that the effort could offer relief to up to four or five million homeowners if you qualify. As a respected foreclosure attorney of Sulaiman Law and Associates in Illinois, Ahmad Sulaiman explains that this program is specific to homeowners who received their home loans through the government organizations Fannie Mae or Freddie Mac.

Qualify for the Program

You may find yourself presented with a few options to help you keep your home if you do end up qualifying. Two favorable solutions are a loan modification, where the terms of your mortgage are negotiated to make your monthly payment lower; and refinancing, in which the value of your home is reappraised and you are offered a new loan at a lower interest rate.

Another possible route is that your home may still go into foreclosure. Only instead of another buyer purchasing your home, Fannie Mae or Freddie Mac would keep the deed and you would pay rent to live there. Typically, this rent would be about 31% of your monthly income.

The HUD program, however, is still in its early stages, and home modifications will continue to be available until December 31, 2010. Besides having to successfully complete a trial period, you can also expect that there will be a slow progression before its final impact.

Dont Qualify for the Program

If your loan is owned by a bank and not the government, then you dont qualify for the program. But you can still pursue similar options with your own lenders. With the help of a foreclosure attorney in your area, you can enter negotiations with your lenders to either modify your loan or refinance. And, if you feel that you have been misled by your lenders, or that they handled your loan illegally, you can also take the steps to successfully sue them and possibly stop the foreclosure process from advancing.

The solution that an attorney can offer you is different from the HUD program. It wont be a government-funded approach, and you will not be able to present your lenders with the option of renting your home. Others wont follow suit with the government because banks cannot own homes. Therefore, if your bank cant own your home, then they cant rent it you either.

No matter what type of entity owns your home loan, you should seek legal advice from your lawyer, who will help you regain control of your finances and remain in the house that you have made a home.

This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article create an attorney-client relationship.

by: Ahmad Sulaiman

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