President Obama has twisted the federal loan modification program, the Homeowner Affordability as well as Stability Plan that is value around $75 billion dollars and would assist 7-9 million homeowners save their homes and stop foreclosure. This program is not for everybody, find out if you get eligible for facilitate and how it would help you.
Each lender that is taking part in the program would look at every modification application independently though the federal Government has various guidelines to determine if someone qualifies for a loan modification program.
- You must live in your home
- Your current loan must fall within the limits: ($625,500 in high cost areas and for other areas it is $417,000)
- Your house payments must be more than 31% of your gross income(Loan modification kits can help with all financial calculation your lender may want to see)
- You must be able to prove your income
- You must currently have some income
The Advantages:
For homeowners that get eligible for the following advantages would be able to get under President Obama's Loan Modification Plan:
- Interest rates reduced, target 4.5%, lowest possible 2%
- Term extended up to 40 years
- The principle can be reduced
- $5000 paid by the federal government to the borrower that stays current with their modified mortgage
The government's loan modification program is intended; nevertheless most lenders have agreed to contribute in the program. Thanks to the Homeowner Affordability as well as Stability Plan there has never been a better time to follow a loan modification. Although with this opportunity there is also the downside that your lender will not have the time or patience to walk you through the process, to get approved fast for a loan modification you would require to prepare all documentation prior to you begin the process of speaking through your lender.
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