Mortgage Loan Modification
President Obama recently introduced the Homeowner Affordability and Stability Plan to bail out as many as 4 million to 5 million homeowners facing foreclosure. The mortgage loan modification program allows you to re-negotiate the existing loan terms and facilitate easy repayment of the same. Not all loans can be modified and if you who have availed a mortgage loan from Fannie Mae or Freddie Mac, you are entitled to loan modification.
Loan refinancing is different
Loan modification is different from loan refinancing. Loan refinancing is meant for homeowners who have overdue debts. A mortgage loan modification is meant for homeowners who are current with their payments. In this context, current payment means you have missed only one payment and you were late by not more than 30 days in the last one year or 12 months.
To qualify for a loan modification program, you have to fulfill the following criteria. They are as follows-
- The loan must be secured by Freddie Mac or Fannie Mae
- You are required to furnish documentary evidence that you are facing financial hardship
- The amount you owed on 1st mortgage should not be more than USD$729,750
- The home should be your primary residence.
- The first mortgage should have been obtained not after January 1st 2009.
- You have to give details of your assets
- Recent tax returns
- Gross monthly income
- Details of 2nd mortgage if applicable
- You have to give details of the minimum monthly payments on your credit cards
- Outstanding balances on your credit cards and the interest rate each of them attract.
- If you are making payments for student loans, car loans etc, you have to give details of the same.
If you qualify for the loan modification process, the next step is to initiate the process. To apply for loan modification you have to
provide the following-
You may have to undergo a credit counseling session if your loan modification request is accepted. Loan modification is initiated with a 3 month probationary period. Execution of documents related to loan modification takes place only if the payments are regular. Mortgage loan modification requests must reach before June 2010.
How do lenders help you?
Lenders will help you in 3 ways. Depending on your requirement, lender may change your rate of interest from ARM or adjustable-rate mortgage to FRM or fixed-rate mortgage. Alternatively, your principal balance and your monthly payments may also be reduced.
For more information
Free mortgage advice – Free mortgage advice from a Senior Mortgage Officer.
Make the most of Florida hard money loans from Blueh2ofunding.com to raise funds for your financial needs. Advantages of commercial hard money loans borrowed from Blueh2ofunding are more than what a traditional loan offers.
Recent Updates
Expensive life style and high standard of living has made people take up loan programs. When they are unable to pay back the loan, they often submerge in the pool of debt. There are many companies who offer help to settle the debt but often turn out to be unsuccessful. This article would share a few tips so that you can avoid falling into the maze of debt.
Are you planning to buy a home? The right finance would give you the best deal. So the most crucial task of a home buyer would be to shop for a good mortgage loan
It does not take much time to find an excellent mortgage loan. But you need to know what you are looking for [...]
Discussion
What do you think? Leave a comment. Alternatively, write a post on your own weblog; this website accepts trackbacks [trackback url].
Leave a Reply