Believed by many to be the root cause of the current economic downturn, the sub-prime mortgage crisis is of concern to many people, not only those who actually took out sub-prime mortgages but also people whose financial securities were affected by the hit the banks took when the sub-prime mortgage bubble burst. In response to all the problems cause by the crisis several government programs have been started to help people to stay in their homes and deal with deflated housing prices that dominate the market. Several programs allows people with mortgages to modify their monthly mortgage payments to make them more manageable. Unfortunately these sort of tragic circumstances give rise to scam artists who seek to steal money from people through fraudulent schemes. Please avoid these schemes by recognizing that assistance from a government approved housing counselor will be free.

Loan modification is one of the best options available for those whose monthly mortgage payments have become to expensive for them to pay. Things to keep in mind are that these loan modification offerings are usually only available if the home is your primary residence. The amount that you owe on the loan also has to exceed a certain amount. You will also have to give proof of the significant hardship that is keeping you from making your monthly mortgage payment, whether it is a significant increase in the amount of your monthly mortgage payment, or a significant decrease in your amount of monthly income, or the need to divert income to other expense like medical bills. When you received your mortgage is also another important factor in determining whether you qualify for the government sponsored loan modification program. Finally, the percentage of your monthly income that would have to go toward covering your current monthly mortgage payment weighs heavily on the the amount of loan modification available to you.

Even people who are current on their mortgages can benefit from government programs. Along with loan modification their are also refinancing opportunities available. Even if you are current on your mortgage your home has probably decreased in value over the last year and you probably have not been able to take advantage of the low interest rates currently being offered if you refinance. The government program works to help people in the situation by allowing them to refinance mortgages that are owned by a government sponsored firm. Please note that this type of refinancing is only available to people who are current on their mortgage.

Changing how you pay your mortgage in one of these ways can definitely bring some peace of mind. Not having to worry about payments ballooning out of control a year down the road, knowing that you interest rate will not change over the life of the loan, and eliminating high risks loan terms are all benefits of participating in the government program if you qualify. The current crisis does not have to spell complete disaster for you if you avail yourself of the lifelines being offered by the government.