Help refinancing-mortgage-rate to avoid foreclosure

Just a few years ago, the term refinancing-mortgage-rate to avoid foreclosure was used only in the case of irresponsible borrowers.

Because of an unstable economy, low wages, and job lay-offs, there are many families that are seeking mortgage help so they can stay in their homes.

The government is offering help on many levels and this will only increase in the very near future. The financial housing crisis is the result of bad choices on the part of banks and local governments.

It's true that homeowners need to be more responsible in their decisions for managing debt, but the cold fact is, the cost of construction of new homes has risen beyond the reach of lower and middle-class income earners.

Banks have only made it possible for people to get into homes. Whether they can stay in those homes or not hasn't been fully considered until now.

That's why we need a little help to manage our debt. In the end, we need to do whatever we have to do to take care of our families.

Avoiding foreclosure is important for many reasons. A bankruptcy is not as bad as a foreclosure on a credit report. Bankruptcies last seven years, home foreclosures last a lot longer when it comes to credit.

There are several places where struggling homeowners can go to get help with debt management and foreclosure help.

Fannie Mae and Freddie Mac hopefully, will soon be offering programs to help alter mortgage payments to acceptable levels.

FHA is offering some programs and will expand into different areas of help.

HUD is offering some programs to reduce monthly mortgage payments to help homeowners avoid foreclosure. You can go to HUD at the following link.

Housing and Urban Development

An older standard that banks used to use just a few years ago was the debt to income ratio. If a home mortgage cost more than 35% of a family's monthly wage, the family could not get that loan.

We are now seeing many families paying more than 50% of their monthly wages for mortgages. The government bailout plan wants to help those homeowners get back under 38% of their monthly income to avoid foreclosure.

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