With the increasing threat of foreclosure many homeowners are looking into ways to refinance their home loans. One of the ways they can do so is by looking for free government home loans. Many people are not aware that you can use fha home loan programs to refinance your mortgage.

You can use fha government home loans to refinance your existing home loan or even for first time home loans.This loan will still be subject to all the requirements just like a first time home buyer which will be a 3- 5% deposit, and be within the limited value determined by each state.

So if you are having problems with increased  ARM rates and you don’t want to face foreclosure look into getting fha government home loan to refinance your debt.

It is apparent that the country is entering a period of financial instability, major negative financial factors affecting the economy.

These factors are; the increase in interest rates, depressed home values, higher credit card minimum payments, increasing gas prices and the recent Wall Street crisis.

The present credit crisis was fueled by country wide home loans being given to low-income families for over-valued homes. Now the storm has hit as many first time home owners who are finding their home is worth less than their mortgage!

When these facts are combined with the crazy rise in the price of fuel, it is easy to imagine that a lot of families will be hit hard and probably be forced into foreclosure and eventually bankruptcy.

Most people are unaware of the clause in mortgage contracts giving the lenders the right to call in the country wide home loans if they are in arrears.

As for your credit card debts, the credit card companies have now doubled the minimum payments required which imposes a further burden to the borrower.
If you cannot meet your minimum payment  the  lenders will offer to consolidate your debt by taking your home equity as security. Should you accept this debt consolidation help and are in default then the bank will be entitled to foreclose your home! We are seeing an all time high for foreclosures in Indianapolis, Atlanta and all around the country.

As interest rates continue to go up and the credit crunch continues to bite, we will see a glut of foreclosures like what we saw in the 1980’s or even worse.