The present financial depression has caused enormous economic misery amongst the Americans. There are people who are losing jobs or working on half of their paychecks just to continue their jobs. There are homeowners under pressure to keep their houses and pay their loans on time. See how home loan modification can help you keep your house away from Foreclosures! The primary part of this plan wants to help the homeowners who are finding it difficult to refinance their mortgage because of the depreciated values of their homes. Like Warren Buffet said, "foreclosures don't occur because a loan turns upside down. They occur for the reason that the family can no longer afford the payments." The succeeding part aims on adjustment of home loans so that the homeowners can keep their houses and get 2% federal loan modification. It aims at lowering interest rates and making sure that the monthly payments are not more then 31 % of their monthly revenue. To be sensible I doubt if this Obama's loan modification Plan will cure recession, but will certainly help thing not get worst. Like it is said by the economist Karl E. Case "I think all these government programs are helpful, but I wouldn't look for them to cure the recession or even what ails housing. At best, they're preventing things from getting much worse."
Before I can tell you who are eligible, let me explain you who is not eligible for the Obama's loan modification plan.
The so called Jumbo Mortgages are actually considered to be a "No" when it comes to mortgage modification. From past year the Obama modification plan has decided to not to help modify their loans if their mortgage is above $ 470, 000. Even Fannie Mae and Freddie Mac have refused to provide loan modifications to jumbo mortgages and I doubt if they are allowed to buy or even guarantee them.
Who Will Qualify For Home Loan Modification Plan?
- The primary residence of the borrower and not condemned.
- The current mortgage balance can't exceed $729,750, and was originated before 1/2/2009.
- Financial hardship Proof. - Death of a money making individual, loss of job or unwanted hardship like health illness.
- The loan should come under Freddie Mac and Fannie Mae
What Is The Application Process Of Home Loan Modification?
Keep all of your income certification ready. Past tax returns and Pay Stubs are also included in the application process.
- Complete the Request Form (Request for Modification and Affidavit)
- Complete the Tax Authorization (IRS 4506T-EZ Form)
- Gather Proof of Income
- Send the Documents to Your Mortgage Servicer
On April 5 2010, Obama affirmed to help the homeowners to sell their houses for less than they owe and also pay them extra cash to speed the process of eviction. This HAMP loan modification will make the investors get all the losses but will certainly make a lot of money in the long run than when the houses will go into the foreclosure.
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