Mortgage Relief Program: Federal Government Mortgage Incentives

July 21st, 2011 | Posted in Debt Relief

Does government debt relief exist, and if so, what exactly are your options? While some of us will use our stimulus checks to pay down debt, others are looking for a little more assistance from the government. But there are some misconceptions about what the government can actually do to provide debt relief. Government Debt Relief and Grants- There are a lot of advertisements and articles claiming that an abundance of federal grants exist that will provide you with debt relief. They say you just have to know where to look. But have you ever noticed that they never tell you where to look? That’s because these grants to help you pay off your debt don’t exist. There are a variety of programs that assist low-income families to afford necessities, such as rent and certain utilities, but there are no grants that help you pay your credit card debt.

If you have been facing problems in paying off the loan in the recent past, then you should go through this incentive plan before you call it quits. According to the American Recovery and Reinvestment Act of 2009, anybody who has taken a loan from the Federal Housing Administration (FHA) is eligible for refinancing their loan. This refinancing is done through the Economic Stimulus Act that was introduced in 2008.

mortgage relief program The one area where government assistance has recently become available is in the realm of mortgage debt and possible foreclosure. Due to the subprime mortgage meltdown, the U.S Department of Housing and Development (HUD) now offers the FHASecure loan program for those who are at risk of foreclosure and need to refinance their subprime mortgage. Benefits of the FHASecure Loan Program- The FHASecure program allows you to refinance your subprime or adjustable rate mortgage to lower your interest rate and change the terms of your loan.

Home Affordable Refinance Program has been designed by the federal government to allow people with mortgage loans avail refinancing even if their homes are currently valued less than the mortgage they have taken. However, to avail this package one has to have a good credit history.

This program is intended for those borrowers who had trouble paying their mortgage after their rate reset to a higher rate. You must have a clean payment record for your mortgage during the six months before your rate reset. If any of those payments were late, you will not be eligible. You must be able to demonstrate the ability to make all future mortgage payments at the new rate, including sufficient income and employment stability. The home that the loan is for must be your primary residence. If the above debt solutions don’t apply to you, there’s no need to worry. Federal assistance isn’t the only way to reduce your debt. Educate yourself about all the options and improve your financial health today.

Learn more about Obama Mortgage Relief Plan Qualifications.