If you are struggling to keep your home there is a new program that was introduced in September 2010 called Save My Home AZ .
The program is funded by the U.S. Treasury Department, and Arizona received $125.1 million to run the program, because our state has been one of the hardest hit by foreclosures.
Certified Consumer Specialist Dean Weggner says the purpose of the program is the help homeowners in distress to become sustainable and be able to afford a new mortgage payment by reducing your principal amount owed on the house.
But you do have to meet certain qualifications to receive help.
You must be at least 60 days behind in mortgage payments. Show proof of reduction income, for example loss of income, an illness or underemployment. You cannot make more than 120 percent of the area income.
Weggner says you cannot be unemployed to qualify for this program. In addition to that, you also can't qualify for the H.A.M.P program; this is the federally funded Loan Modification Program.
The assistance you receive will be a reduction in principal. Your mortgage company has to agree to match the amount you received from this program.
Weggner provides an example: Save My Home AZ approves you for $10,000 reduction in principal, your mortgage company has to agree to also reduce that approved amount dollar for dollar. So your principal would be reduced by $20,000. From there you will have a mortgage payment that you can afford and therefore allow you to keep your home as long as you pay your new mortgage payment.
A person who qualifies can receive up to $50,000. Weggner adds that they estimate about 4,000 households will be able to receive this reduction in principal through this program.
You can go to Savemyhomeaz.gov , to find out more information and apply.