The government of your country plans a roof for you. Sit back and take a breather for the government mortgage help program is aimed at your welfare. Recession has coaxed the government to pass bills that will provide mortgage help. The intent of the bill is to help people avoid foreclosures. This program is a part of the Homeowner Affordability and Stability Plan. The objective of this plan is to help with mortgage payments so that you can avoid foreclosure and save your home. The program is quite complex. In this article, we intend to throw light on some important features of this government mortgage program.

Typically, there are two main objectives of this plan. It will help homeowners avoid foreclosure and it will also help current homeowners to refinance their mortgages so that they make less payment every month. This is possible with the help of fixed rate loans. If you have not been able to keep up with your monthly mortgage payments, it is like inviting a foreclosure. To your rescue comes this mortgage help from the government that will help you avoid a foreclosure. Similarly, if you are current on your payments but need some financial relief due to lack of funds, you can seek a refinance program. But, this program has an eligibility criterion and you need to check if you qualify for it.

Eligibility Check

• The amount of money you owe on your house (without interest) should be less than $729,750. If the outstanding amount is higher than this, you may not be eligible.

• If you are an investor or a speculator, you will not benefit from this plan. This kind of mortgage help is meant for the people who have their homes as the primary place where they live.

• This kind of government help with mortgage payments is valid only until 2012. After December 2012, nobody will be eligible for this program.

• You also need to check with your lender if they are participating in this program. Most of them will, as they do not have to go through the process of foreclosure. They will agree to change the terms of your mortgage.

• If your loan amount is more than $417,000, you may not qualify for the refinance program. This kind of loan is referred as jumbo loan. But, there are some conditions that can qualify for this assistance. For instance, if you live in an area with high property values like New York, you may qualify even if the loan amount is more than $417,000.

There are several banks that are willing to offer loan modification programs. If you do not qualify for mortgage help from the government, you could seek help from financial institutions and banks. Mortgage help programs are beneficial for both, the lenders and the borrowers. Homeowners as well as lenders both are motivated to participate in this government mortgage and modification program. If you haven't yet evaluated this option, act soon. It is good to start early and analyze all the available options. If you want to save your home and reduce the monthly payments, this plan can be of great help.