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Homeowners stuck with sub prime or adjustable rate mortgages will soon be getting the home loan modification help they desperately need. Several new home loan modification programs have been launched by the Federal government and lenders to make it easier for delinquent homeowners to get a home loan modification. Billions of dollars have been earmarked to help borrowers get out of their toxic mortgage loans and help solve the mortgage and housing crisis.
How can you get the home loan modification help you need? First, you need to determine if you will qualify for one of these new home loan modification government or lender programs. If you have a Countrywide loan that was originated before December 1, 2007, you may be eligible of part of the $8.7 billion lending abuse settlement home loan 
modification program. Under this new home loan modification program, distressed or foreclosed Countrywide borrowers can receive interest rate reductions, principle reductions, penalties and fees waiver and receive additional lump sum payments to borrowers facing imminent foreclosure.
For other distressed homeowners seeking home loan modification help, President Bush launched the “Hope for Homeowners” program effective October 1, 2008. This home loan modification program, which was originally approved back in July, will allow borrowers to refinance into government insured loans at low, 30 year fixed interest rates. Homeowners who qualify for this home loan modification program will see their new loan balance reduced to 90% of the homes’ current appraised value to compensate for loss of equity due to the housing downturn.
The recent collapse of Washington Mutual and Wachovia due to their delinquent loan portfolios has also opened a window of opportunity for home loan modification help. There is a new urgency to get their mess cleaned up as soon as possible. If you have a bad home loan with Washington Mutual or Wachovia, you need to find out about the new streamlined home loan modification programs they are beginning to offer. Thousands of homeowners will be given the chance to convert their unaffordable home loan into a lower, affordable payment with a home loan modification.