Walking away from your home and heading into foreclosure proceedings during these tough economic times can cause regret for years to come. Many people think that they can just walk away from their home and that no more money can be squeezed from their pockets but this is incorrect.
Those who could lose their homes due to foreclosure may be in luck as a new federal program that started on April 5th, 2010 could help you avoid losing it.
The Obama administration has implemented the Making Home Affordable program which offers homeowners three ways to get out of financial ruin. Through this federal program homeowners can refinance their mortgages to take advantage of lower interest rates; modify first and second home mortgages ; and the program also offers other options besides foreclosure through the Home Affordable Foreclosure Alternatives Program (HAFA).
Homeowners should visit the Making Home Affordable program website and take the eligibility surveys. Keep in mind that foreclosure can ruin your credit scores for a long period of time. Before you let your home go, make sure you have looked at every other possibility. It may be in your best interest to contact a credit counseling organization or you could consider hiring an attorney.
Just remember there is no magic potion or trick to get you out of debt. Every option has its pros and cons so think carefully before proceeding.
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