Struggling Homeowners May Start Seeing Relief Today

Homeowners Will Begin to See Mortgage Relief Today

Details of the $75 billion foreclosure prevention program were released today and homeowners were informed that they can begin contacting their loan providers about assistance eligibility.

The program consists of a multi-pronged approach that involves modifying loans for homeowners at risk of foreclosure and refinancing options for homeowners in financial need.  The program is expected to help about 9 million homeowners get a foothold in financial stability.

How Does the Program Work?

The $75 billion plan will provide incentives to lenders, homeowners and investors in order to spur mortgage modifications. Interest rates will also be reduced as the government will subsidize interest rate reductions to get borrowers affordable monthly payments.

Who Qualifies?

While eligibility details are still being released, it is known currently that in order to participate in the loan modification plan, homeowners must:

• Have obtained their mortgage before January 1st, 2009
• Use the property as their primary residence
• Have a mortgage of less than $729,500
• Document income by providing tax returns and pay stubs
• Sign a statement of financial hardship

Homeowners who are fearing foreclosure on their homes should contact their lender immediately for information about mortgage assistance.

>For information on reducing your home insurance premiums every month, visit our home insurance discounts page and see if you qualify for homeowners discounts.