Many families are still facing the possibility of losing their homes to foreclosure. Troubled homeowners throughout the country are searching for ways to prevent this terrible action. The following will enlighten these folks about the many different loan modification programs available to help keep them in their homes.

Phoenix, AZ -- (SBWire) -- 12/07/2012 --When a financial problem arises that results in someone being unable to make his mortgage payments, the threat of foreclosure often isn’t far off. A loan modification program can really help a property owner maintain possession of his assets, and here is a look at how to access and apply for one.

Set up a meeting with the current mortgage servicer to explain that there is a financial issue that precludes timely, full monthly payments. Show proof of this: Bring pay stubs illustrating a cut in wages; provide doctor’s notes that indicate one is unable to work due to injury or illness; or offer verification of the recent addition of one’s elderly parent to the household, a parent who requires full-time care, which stresses the family budget. If one’s present lien holder does not offer in-house loan modification programs, ask if there are others one can look into. The answer to that question is that there are, indeed, other plans that can help a homeowner facing foreclosure. These are government-sponsored programs such as HAMP and HUD plans.

Guidelines for Loan Modification

The loan modification program known as HAMP (home affordable modification program) was developed in 2009 to aid struggling homeowners. An individual can apply for HAMP through his lender, if that lender participates in the program. Because of hefty financial enticements for lenders, most of them are participants in the plan. When applying for HAMP, be ready to supply all the proof of financial distress listed above. One does not have to live on the premises for which he is requesting assistance and his debt-to-income ratio no longer has to be greater than 31%. Even if a homeowner has been granted a HAMP previously and defaulted on it during the three-month trial period, he may still be able to qualify for the program.

Other loan modification programs are offered through the auspices of the Department of Housing and Urban Development (HUD.) They offer the Hope for Homeowners plan, which lowers a mortgage payment to make it easier to handle. HUD can also connect troubled homeowners with different lenders to find ones that are willing to work with them. If worse come to worst and foreclosure cannot be avoided, HUD offers the HAFA (home affordable foreclosure alternatives) program. This plan helps owners with the short sale of their premises for the best possible return.

About Credit-Yogi
www.Credit-yogi.com, an online marketing company located in Pittsfield, Massachusetts ,has more information about loan modification plans and is willing to share it with all interested parties.