Many people are finding themselves in financial difficulty trying to pay their mortgage and getting behind in their payments? lots of people find themselves defaulting on house payments each day and that number is going up all the time.

One of the reasons for this happening is because of the so called sub prime loans market. Over 70% of those loans are now expected to default due to the sudden jump in mortgage interest rates which then caused this collapse.

If you are in this situation you will find there is a federal government loan modification program aimed at helping people in this position and the aim of this program is going to help make sure that you aren’t falling behind on your house payments and help to keep your house out of foreclosure.

This program is something that has been backed by private lenders who are being subsidized by the the government to ensure they are not out of pocket. This is to make certain that the people who need the help the most are going to get it quickly without going further into debt.

There are a few things you need to know about this program.

#1 The amount you are currently paying has to be at least 31% or higher of your income each month. This figure is to ensure only people in financial hardship get proper help.

#2 Upside down loans. This is where the value of the loan exceeds that of the property. Most companies will not touch these, but the government is underwriting the difference to cover any losses that lenders have. So even if you are in this position you can get a loan modification.

#3 Only properties with a value of up to $729,950 dollars are covered and it must be your primary residence. Second homes and unoccupied homes are not covered.

#4 Only loans taken out before January 1st 2009 are covered.

#5 You can find more information on this program at makinghomeaffordable.gov. Follow the guidelines and do not pay anyone any money upfront.

Many homeowners are making use of the system and are using it to change their loans to help protect their houses from going into foreclosure. If you act fast, you are going to keep foreclosure from happening to you.

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