Loan Modification Program Encourages Foreclosure

For homeowners considering going into foreclosure to be eligible for a loan modification or Government bailout, there are some very serious consequences of having your home foreclosed with the hope of receiving aid from the Government.

It is recommended that you not allow your home to go into foreclosure to receive aid, as there is a high possibility that you may not be eligible for the Government program and could put yourself in a very bad credit situation and you could end up losing your home.

Refinance or Modify your Loan

As an alternative to going for Government aid, you should contact your bank or mortgage owners and see if they can modify your loan. If that doesn’t work, you can shop around for a mortgage refinancing, wherein someone else buys your current loan, and issues you a new mortgage, with more traditional fixed APR-rates.