Many homeowners are facing life changes and or mortgage interest rate changes that may be causing a serious crunch on the budget. Even in tough times, it is very important to keep making your mortgage payment (as well as staying up to date with your other bills). Is this a problem for you right now? Might this become a problem for you in the coming months? If so. . .read on. If you know someone who is in this situation, please pass along the following information.
Last week, President Bush, initiated Hope Now in an effort to assist homeowners who are in danger of losing their homes when their ARM mortgage adjusts to a higher rate. If you took out a sub-prime, adjustable rate mortgage between January 1, 2005 and July 31, 2007, and your rates are going to jump before July 31, 2010, you may be elegible for an interest rate freeze for 5 years. To qualify, you must be current with your mortgage payments and be able to prove that you cannot afford the rate increase. Call the Hope Now hotline 24 hours/day, toll-free at 1-888-995-HOPE to speak with a counselor.
What do you do if you don’t have a sub-prime loan or are already late on some of your mortgage payments? It is very important that you reach out for help, now. Consumer Credit Counseling/Money Management International is a non-profit organization there to help you. Call them toll-free at 1-866-889-9347 and be sure to ask if you are eligible for the PHASES (Preserving Homeownership and Savings Education Strategy program) that comes from a grant given by HSBC North America. This program has no income restrictions and is not tied to a particular lender. It is available to borrowers who seek credit counseling from Consumer Credit Counseling Services or Money Management International. Through PHASES, grants of up to $5,000 are available to consumers who are facing temporary financial problems due to divorce, medical expenses or unemployment. This program is available in Maryland, Virginia, Arizona, California, Connecticut, Florida, Illinois, Massachusetts, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania and Texas.
There is help out there for anyone who is facing foreclosure. Along with the above resources, it is always a good idea to contact your lender or loan servicer to notify them of your situation. Many times they are more than willing to help you out — it’s less costly for them to work out a solution with you than it is to foreclose on your home.
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