Finding help to avoid foreclosure might have lead you to researching foreclosure help with a principal reduction. This is a program that is an initiative funded by the U.S. government to help homeowners that owe more on their home than what it is worth. The reduction of principal could help lower monthly payments and get a homeowner back on track. That is the theory at least. A quick overview of the qualifications can prove that this program is very difficult to get approval. The first roadblock is that a mortgage cannot be owned or guaranteed by Freddie Mac or Fannie Mae. According to housing studies, this eliminates more than 60 percent of applicants that try to get foreclosure help with a principal reduction.
Seeking Foreclosure Help with a Principal Reduction
What you are not told when you seek government assistance is that you must go through your mortgage company to seek approval. If you have already received a notice of foreclosure, it could be too late to be recommended to a new servicer for help. A sale date is usually established within 60 days after notice of foreclosure is filed and sent to you. Many mortgage lenders stop communication after this letter is sent. This is why so many homeowners end up in foreclosure. If you happen to get referred for the PRA program, you must be able to submit evidence of an extreme financial hardship. This includes certified copies of your monthly bills, secured and unsecured debt, annual tax returns, mutual funds and stock reports and other verifiable proof that you cannot pay your existing mortgage.
There are strict income requirements that the PRA program requires you to meet. The current national average for a mortgage is 30 percent of your monthly income. In order to qualify for PRA assistance, your mortgage must be higher than 31 percent of your income. This requirement is before tax on monthly earnings. The Federal Government does not publish statistics that can be used to verify the acceptance rate of this and other programs. This is because the actual approval comes from servicers like major banks and mortgage lenders that make use of federal money. There is help, but you must wade through the confusing waters of the qualification process and there is typically a backlog that can cause delays. If you are trying to stop foreclosure right now, you could miss your opportunity by seeking lengthy government help.
“Foreclosure Help with a Principal Reduction”
www.avoidforeclosoure.com experts know all of the programs that can be used to help you and how to help you select the right one for your situation. Foreclosure does not have to enter your life and ruin the memories that you have built inside of your home. You deserve a way out. By calling 1-800-589-4106 right now, you can speak with a professional that can offer you the help you desperately need. Your fight to avoid foreclosure does not have to hit a roadblock seeking foreclosure help with a principal reduction.