It is important for families to have a home, but if you're too stressed out with the financial problems and you can no loner feel comfort? Foreclosure may be the only option. Still if you can't bear the thought of losing your home, you can still apply for loan modification.

Don't rush the deal with the lender. This will only make more room for mistakes. When you are already in the process of settling the agreement, it would really help if you meet with the lender together with a professional or lawyer. The agreement should be reasonable enough for both parties, which can stop foreclosure.

If you want, you can also inquire about the HASP or the Homeowner Affordability and Stability Plan that is offered by the federal government. The administration allots billions of dollars for the HASP, and if you can qualify, you can definitely stop foreclosure and save your home. This plan focuses mainly on the mortgage payments and not the property values.

Even if the value of the home is declining, the family can still stay provided that they can pay the monthly mortgage payments. Loan servicers or lenders in the US are required to participate in such a plan. The plan can significantly lower the monthly mortgage to 38% of the gross income.

There is no need to worry on the part of the lenders because the government will assume the rest of the amount. Through the plan, the rate of interest can be lowered by 2% and the term of payment can be extended to about 40 years. For every mortgage modification granted by the lender, it will be paid $1,000. Borrowers can also enjoy a reduction of $1,000 on the principal balance for about 5 years, provided that they make timely payments.

This plan by the federal government is for conscientious homeowners who don't want to lose their homes but are simply affected by financial problems. If you qualify and your balance doesn't exceed $729,750, you might as well apply for the HASP.

No more about the HASP and follow the right procedure. This is the best solution yet, and you owe it to President Obama. Take advantage of the loan modification opportunity now.