This is one of two terrific programs that came out of the Obama Administration (the other is the Home Affordable Refinance Program, or H.A.R.P.). If you are in default on your loan, or if you are in “imminent risk” of default (meaning, you look like you might start having problems making your payments) this program will help you. This program is designed to get your monthly house payment to equal 31% of your gross monthly income. 31% is considered a house payment a person can afford comfortably. The program will first take your interest rate down to as low as 2%. If that is not enough to reach the 31% goal the program will also extend the terms of the loan out to as long as 40 years. If that still isn’t enough to reach 31% a portion of your home loan will be sliced off and put on a “shelf”. There are no payments due on that portion of the loan and no interest accrues. You will be asked to pay it off if you sell or refinance the house in the future. However, there is something you need to know about this program: While the Home Affordable Modification Program is technically available to all homeowners you want your loan to be owned by either Fannie Mae, Freddie Mac or FHA. If one of these agencies owns your loan then it is the law that they offer the program to you. What if your loan is not owned by one of them? Then it is not mandatory that your lender offer the program to you and so far we have not heard of any lenders offering the program voluntarily. As you try to save your home it is imperative that you find out who owns your loan since this determines what programs are available to you. This will be the single, most helpful step you will take during your quest to save your house from foreclosure.

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If you are reading this is because you are in financial trouble and you need help fast to get your credit card debt and other types of debt under control. In recent years, the number of bankruptcy filings has doubled due to the state of our economy. Millions of hard working Americans have been laid off from their jobs, got a pay cut or have faced economic trouble due to a medical condition. Whatever your situation may be, you should know that you are not alone and that this process is actually simpler than you might think. This short article will talk about how to file bankruptcy and give some information before you meet with a lawyer. First of all, what you need to know is that there are two types of bankruptcy filings: Chapter 7 and Chapter 13. The first type helps you get rid of all your unsecured debt after you receive a court discharge. This gives a complete fresh start and once you file, you put a stop to harassing creditor calls, foreclosures or threats to garnish your wages or repo you car and other properties. A Chapter 13 or the Wage Earners bankruptcy is a court mandated payment plan on which the judge determines a payment plan for you to repay your debt. This depends on the money you have leftover after you cover all of your living expenses. Consult with your lawyer about the requirements that you need to meet in order to file for Chapter 13. This repayment plan can be either 36 or 60 months depending on your individual circumstances.

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