Does foreclosure seem inevitable? Are your mortgage payments not even possible anymore? Are you wondering if there is any way you can save your home?Mortgage Loan Modification is available to struggling homeowners through President Obama's 2009 Stimulus Package.
President Obama signed a bill that funds 75 billion dollars to homeowners facing the possibility of home foreclosure.
Under the Home Stimulus Package, a homeowner who has an existing mortgage through Fannie Mae or Freddie Mac may qualify to actually arrange a totally new, modified loan.
Banks are given financial incentives to encourage them to provide these reworked loans in an attempt to help curtail the rising number of foreclosures.
The banks have several tools available under the federal program to enable them to lower a borrower's monthly mortgage payment.
They can use any or all of the following: reduced interest rates, lengthened loan terms, waiver of late fees, and possible reduction of principal.
The house payment they are trying to provide is less than 31% of your gross monthly income.
This payment also includes property taxes, homeowner's insurance, and any homeowner association dues.
Who qualifies for a Mortgage Loan Modification under this Stimulus Package? Here are some application guidelines: ·Your lender must be an approved lender by the Treasury Department.
·Your mortgage must have been written on or before January 1, 2009.
·The amount of the mortgage cannot exceed $729,750.
·The home must be a primary residence; you must live there more than 50% of the time.
·The current monthly mortgage payment must be more than 31% of your gross monthly income to be considered a burden.
·You must be considered to have a situation of financial hardship that was caused by events beyond your control.
You must be able to document it all with the appropriate paperwork.
·You also must present a budget that shows the financial ability to dependably meet the obligation of the new payment.