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Stop Mortgage Foreclosure: 4 Factors To Consider

By: Michael Clark|LRL Writer

Mortgage Foreclosure ProcessThe United States economy is still reeling from the negative effects of the global recession. All over America, people either lose their jobs or are driven away from their homes. Debts pile up and mortgage rates shoot off the charts, adding to the hopelessness felt by many Americans. Luckily, the federal government has put into place laws and regulations designed to help financially stricken Americans survive the onslaught of the economic crisis. The interest rates of debts were dramatically reduced, and payment deadlines were extended.

The federal government has stimulated the renewed growth of the private sector by keeping businesses from folding up and granting emergency loan assistance. In order to stop mortgage foreclosure, the practice of loan modification has been encouraged among home lenders and homeowners. Lenders are obliged to assist homeowners who are unable to sustain their monthly payment rates to enter into an eligibility program for loan modification.

In order to be eligible for the loan modification program and stop mortgage foreclosure, the homeowner's current financial situation is analyzed. Factors such as status of employment (employed or unemployed), monthly income, and debt status are all considered before granting loan modification. The reduction in monthly payment rates is decided by the homeowner's total monthly income. The duration of reduced monthly payment rates, on the other hand, is sustained until the homeowner is financially capable to pay the original monthly payment rates.

The practice of loan modification has so far kept countless Americans from succumbing to the economic crisis because they were able to stop mortgage foreclosure. Losing one's job is bad enough, but losing one's home is much worse. Once driven into the streets, one's chances of finding a source of income are greatly diminished. The vicious cycle of incurring debts, losing a job and being driven into foreclosure due to unpaid mortgage, can have a disastrous effect on one's physical and emotional well-being.

In order to ensure that home lenders can implement loan modification without themselves incurring debt or loss of profit, the federal government has injected billions of dollars into the housing industry to stimulate growth and foster the practice of loan modification. Thanks to the federal government, and also many kind and considerate home lenders, the American people as well the economy are slowly but surely on the road to recovery. The ongoing process of loan modification has successfully enabled homeowners to stop mortgage foreclosure and save their homes.

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