If you’ve missed to meet some of your mortgage payments, then you are already at risk of defaulting on your loan which may trigger the start of the repossession process. The government has created two potentially helpful plans to bail you out. The first one is referred to as Mortgage Loan Modification.

If passed by Congress, there are some required qualifications in order to take advantage of the program.

• The mortgaged house must be your current residence

• You need updated Tax returns and payment receipts as your proof of income

• The mortgage ought to be signed and accomplished on or before January 1, 2009

• The first mortgage should be lower than $729,500

• If the total debt of your household exceeds 55% of your regular income, you must undergo compulsory credit counseling

• You must submit a convincing financial hardship letter handwritten and signed by yourself

These are features that banks can do under the Mortgage Loan Modification program.

• Banks can bring down monthly mortgage payments to 31% of your monthly earnings.

• A low 2% interest rate is available but the 4.5% rate usually applies.

• The homeowner is not required to pay any loan modification fees since the provider will be paid by the government.

• The bank will require a balloon payment if the mortgage is fully paid, refinanced, if the payments are too low or if the property has been sold.

• You are allowed only one modification on the program so there will be no further negotiating in the future.

An incentive plan is attached with the program to encourage prompt mortgage payments. If your payments are made on time, the Mortgage Loan Modification program will lower the principal balance bit by bit over a period of 5 years, with up to $5,000 maximum reduction. The balance will be adjusted back up to its normal rate after five years. The rate is reduced merely as an aid to ease your payment burden, if only temporarily.

If you are up-to-date on your monthly payments, your bank will probably not allow any modification on your existing mortgage since the property’s value is now less than your present principal balance. You, in this case, can qualify for the government’s second mortgage bail-out program, the Refinancing Option.

You should have the following requirements to qualify for the Refinancing Option.

• The property should be your main residence.

• Your income should be sufficient to fund the new mortgage option.

• The cash from the new loan cannot be used to pay for other debts.

• Your loan should be owned by either Fannie Mae or Freddie Mac.

• Your loan’s interest rate will be based on current market values and further fees and points may be charged in a later date.

• The mortgage will be covered in 15 to 30-year durations with fixed interest rates.

• You can pay lower interest rates in the first five years of your new loan.

If the appraisal of your property is far below value, the government’s two mortgage bail-out programs may not help you at all. At present, the maximum value of the mortgage balance is set at 105%. It means that if your house’s appraised value is currently $200,000, then $210,000 is the maximum principal balance.

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“We are extremely pleased to be ranked highest in customer satisfaction by J.D. Power and Associates for our exceptional customer service,” said Sterling Edmunds, Jr., president and CEO, SunTrust Mortgage, Inc. “We work very hard to earn our customers’ trust, and nothing is more important to us than hearing that our customers believe we are doing a good job in meeting and exceeding their expectations. This recognition validates our long-standing focus on building customer relationships and our passion to help customers be successful homeowners through responsible lending.”

According to J.D. Power and Associates, in such an uncertain environment, it becomes especially important for lenders to re-establish trust with customers through the loan officer relationship.

This year’s results mark the second time SunTrust Mortgage was ranked highest in overall customer satisfaction in J.D. Power and Associates’ Primary Mortgage Origination Studies, now in its fourth year. SunTrust Mortgage was first included in J.D. Power and Associates mortgage studies in 2002, and customers have continued to rate the company above the industry average every year since then.

As of June 30, 2008, SunTrust Mortgage has originated/purchased more than $21.1 billion in mortgage loans for customers across the United States.

SunTrust Mortgage, Inc. is a wholly-owned subsidiary of SunTrust Bank, one of the nation’s largest banking institutions, serving a broad range of consumer, commercial, corporate, and institutional clients. As of June 30, 2008, SunTrust Banks, Inc. (NYSE:STI) had total assets of $177.4 billion and total deposits of $119.8 billion. Headquartered in Richmond, VA, SunTrust Mortgage originates loans through 205 locations in SunTrust markets and adjacent states, maintains correspondent and broker relationships in 49 states, and services mortgage loans in 50 states and the District of Columbia. SunTrust Mortgage’s internet address is www.suntrustmortgage.com .

Source: SunTrust Mortgage, Inc.

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Learn why searching for a mortgage company has changed. Discover 8 effective ideas to finding the best mortgage broker online and how to guard your credit while you search.

Here are a few simple yet effective principles.

First, look for a mortgage lender with a stellar reputation. Question your friends, co-workers and family. Ask who they’ve used and if they’d return for their next mortgage. When you hear the same company name repeating in your discussions, pay attention.

Second, be on the alert for individuals. Is a specific loan officer often mentioned? Banks and mortgage companies usually employ a number of loan officers. It is important to have as much confidence in your home loan representative as you do their company.

Third, compile your list of 3 to 5 recommended mortgage companies and trusted loan officers.

Fourth, take action. Make contact using a short summary about what you are trying to accomplish. It is better if you write out your purpose ahead of time so you won’t feel flustered or forget important ideas. It also helps clarify in your own mind what matters the most to you.

In one sentence be able to describe your purpose. Are you purchasing a home and need pre approval? Are you remodeling and need cash from your home equity? Is your adjustable rate mortgage payment due to increase soon? Do you want a 30 year fixed rate mortgage with stable payments? Whatever your reasons to seek financing, be straight forward and to the point with the mortgage representative.

Fifth, after stating your purpose let the mortgage originator talk. She may ask you more questions. This is a good sign. It means she’s being thoughtful and creative.

Sixth, ask for her recommendation based on current lending programs. Important! Take notes.

Seventh, check your response. How do you feel about the conversation? How you react can have an affect on the outcome of your mortgage transaction. Remember, a gut feeling matters.

Eighth, grade prospective lenders. By paying attention to their responses, rank them based on whether they sounded knowledgeable and if you liked them.

There is one more important element to finding your best mortgage lender, the internet. More and more lenders are attempting to shift the mortgage application process online. Although many homeowners prefer direct contact with the mortgage broker, it’s become an accepted fact that mortgage lending is moving toward the internet.

Even though online mortgage lending may exceed your current comfort level at first glance, it actually expands opportunities. Reducing expenses to lenders results in lower closing costs to borrowers.

So take advantage of the search function of your online service provider and your preferred search engine such as Google, Yahoo, Windows Live, Ask.

Type in your search words. Try “mortgage rates”, “mortgage lenders”, “compare mortgage rates”, or simply your purpose such as “refinance”. Then sit back and allow the search engines to do the work.

Here is another little idea that may help you find lenders closer to home. Type in the name of your city after your search word.

Then follow a similar process except instead of talking to a loan officer, search through each website.

If you decide you want more information from a specific lender, you will probably have to fill out a brief online application. That is OK but be cautious. Unless this is a lender you are certain you want to work with, do not input your social security number.

There are two reasons for this. One is for security purposes. The other is to protect your credit score.

Warning! Ordering your credit history usually follows releasing your social security number to home loan financial companies. It seems reasonable to provide a lender with your social security number and once your final determination for a mortgage lender has been made, it will be necessary to give your social security number to proceed.

But here are the facts. Every time a lender orders your credit report, it can decrease your credit score, reducing your borrowing ability. So be safe and be smart. Wait until you’ve chosen a lender before providing your social security number.

As a side note, consider using a credit monitoring service such as Equifax to track your credit file so that you know before applying of any credit issues.

Use these simple ideas when searching for a lender. Follow these 8 easy steps. Take advantage of the internet to search online. Protect your privacy and credit score. You will greatly improve your chances of finding the lender that is best for you.

Best of luck searching for a mortgage lender.

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