Along with many other parts of the country, Philadelphia has been hit extremely hard with foreclosures.
Many of these have to do with the fact that people bought houses when the market was booming and now they owe more money than their property is worth.
To try and slow down the fast and growing rate of foreclosures the government has stepped in with a new program that is available here in Philadelphia and every where else too.
This program will allow anyone who is struggling to pay their monthly mortgage bills on time but still making the payments to work out a new deal with the bank that will either lower their interest rate or it will lengthen the term of the loan.
This will lower the monthly payments by hundreds of dollars.
This policy only helps people who are still making payments on time because many lenders have taken it on their own to work with people who are struggling to make payments at all, let alone on time.
When you file for foreclosure the lender not only loses their profit but they lose the original loan they gave out.
To prevent this from happening banks are trying to offer the monthly payments and keep you in your home.
It is good to see that something is finally being down to slow down the rate of foreclosures in this country.
The problem is that many people are nervous about what would happen to their credit score.
While it is true a foreclosure is worse, a lower score can shut you out of other things.
If you do modify and want to fix your score you can hire a credit repair company to do the job fast.
Credit repair is great because it can repair any score no matter the reason it was lowered and it can do it in weeks rather than months and years.
The process is simple, effective and easy to do.