Facing Foreclosure? Loan Modification Help May Be Available
Foreclosure is a horrible thing for any family to face. If you are in arrears in your mortgage or are just barely making the payment each month, there may be loan modification help available that could save your home.
President Obama has signed a bill allocating 75 billion dollars to boost the sagging housing market and help homeowners like you avoid foreclosure. Under this program, approved banks and lenders receive financial incentives of $1000 for each existing Fannie Mae or Freddie Mac loan that they rewrite. The goal in the rewriting is to provide a lower, more affordable house payment for struggling homeowners. The end result is the avoidance of foreclosure.
The new mortgage payment is achieved through a variety of methods, using one or all as needed. The lenders can reduce interest rates, lengthen loan terms, waive late fees or even reduce principal. They are seeking to achieve a payment, including property taxes, homeowners insurance, and any association dues, that is less than 31% of the homeowner's gross monthly income.
The following are among the guidelines to apply:
The home must be a primary dwelling; you must live there.
The original loan has to have been signed on or before January 1, 2009.
The loan amount cannot exceed $729,750.
Your current payment must total more than 31% of your gross monthly income. Again, this includes your property taxes, homeowner's insurance, and any associational dues.
You must be in a state of financial hardship over which you had no control. This must be documented with the appropriate paperwork, of course.
You also must be able to document how you will be able to pay the new, modified monthly payment.
Do not give up hope yet. Loan modification help is available if you qualify.
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