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Getting Out of Debt

How to Save a Home

Strategies to avoid foreclosure.

If you owe more on your mortgage than your house is worth, get in touch with your lender to see if you qualify for a loan modification. If that doesn't work, contact Hope Now for free assistance on how to prevent a foreclosure. A coalition of HUD-approved counseling agents, investors and mortgage companies, Hope Now will help you come up with a plan of attack. Another good resource is a HUD-approved housing counseling agency.

More homeowners will qualify for assistance under President Obama's "Making Home Affordable" plan. Details of the plan are still being nailed down, but it includes an option to refinance that you can use if your mortgage is backed by Fannie Mae or Freddie Mac. It also has a loan-modification program to help reduce payments. Under this program, the lender would reduce monthly payments and Uncle Sam would kick in funds to lower them further. The Treasury Department is setting up a new Web site to explain the program.