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Loan Modification Plan, introduced by Obama Administration as a tool to fight increasing foreclosures have failed, as many homeowners who experienced severe economic hardship were not able to qualify due to stringent qualification requirements set under the program. This happened mostly because banks were given freedom to decide whether to participate in the plan or not. While U.S. Government heavily funded financial institutions in forms of financial incentives, many have decided that participation in modification program was too much hassle for them. As a result, many households saw foreclosure as inevitable thing to happen.
Loan Modification Changes: Coming Soon?
Overwhelmed with consumer criticism, U.S. Congress has announced that a number of changes are to be made to the original modification program, allowing more consumers to qualify. Hopefully, announced changes will help many families to avoid foreclosure who were not able to qualify for mortgage modification earlier. While it may sound very promising, the timeframe of the new changes to be adopted was not announced. The way things are today, until the newly announced changes will be adopted, the number of foreclosures is on the rise, widely increasing across the country. Many homeowners are under impression that they simply would not have enough time to wait until government implements so-awaited changes.
Effective Tools to Prolong Foreclosure Process Are Within Your Reach
The good news is there are few effective strategies that may help to slow down the foreclosure process, and buy more time. It does not matter, whether you have a job and a steady income or not. You still have a number of effective ways to fight for your homeownership rights. It all depends on your desire to use specific details of your individual situation to your advantage. Writing a Letter of Hardship to your lender, explaining your financial situation, is the first step that you may take on your way to prolong foreclosure process.
You may also request a court hearing where you will be given an opportunity to explain your individual situation and try to come up with a payment solution that would satisfy your lender. Many lawyers acquire and prolong court hearings for years, allowing you to stay in your home without paying a penny to your lender. Pointing out mistakes in the loan and housing agreements is another effective way to fight your lender. All methods above may help you to stretch out the foreclosure for years. Should your situation not change afterwards, you may consider a more drastic solution that would help you to keep your home, such as bankruptcy.
Free Help Is Available Online
Many people are under a wrongful impression that they need a highly paid lawyer to proceed with all above-mentioned methods. While some of them do require knowledge of how mortgage industry works, you may get help without hiring an attorney. There are a number of nonprofit organizations that help struggling homeowners to avoid or to prolong foreclosure. They may give an invaluable advice free of charge, as well as help you to develop an effective strategy to fight your lender based on your individual situation.
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