Does the paperwork say "Home Loan Modification" anywhere on it?
The government program is offering a few different options. The options differ depending on your situation.
The only option I have facts on is the home loan modification.
They give this to people stuck in bad loans, or loans with adjustable rates.
They give you a trial period of 3 months to make payments on your mortgage at a slightly lower amount and then if you make those payments on time you're accepted into the program. The program gives you a low interest rate for 5 years and then at the end of the 5 years the rate gets set at market rate or 1% below market rate at the time you were accepted into the program.
You keep the new slightly lower payment. They do not change how much you owe on your house, it just enables you to get into a loan that is stable.
You have to prove hardship and some other things to get accepted.
You also have to have a fanny/freddie loan, or insurance I believe to get in on that program, which would have already been determined since you were solicited by your mortgage company.
I also believe for every year you pay on time you get $1000 toward your loan for up to 5 years after you are accepted into the program.
