Mortgage Modification: How To Fight and Win
Getting a mortgage modification isn’t the sure thing that people thought they were just a few short years ago. Many who were looking for help have found out the miserable truth– that banks are not working in the best interest of the homeowner when it comes to receiving a loan modification. In fact, many who though they were a shoe in to receive help from the government and the banks are finding the opposite is true. The government programs are failing, and more people are losing their homes than ever before. Estimates reveal that up to 70,000 American families are losing their home every month– many without a mortgage modification in place.
The good news is, a mortgage modification loan isn’t actually a loan. The correct term is actually “loan modification.” It is the act of adjusting (modifying) the terms of your existing mortgage loan in an effort to make your monthly payment more affordable. Now maybe you’re a little bit more interested in loan modification. Could you be eligible for a loan modification through your lending institution? The only way to know for sure is to go online or contact a representative from the bank and ask about loan modification criteria.
How Much Burden Will The Loan Payment Put On Your Income- Guidelines for the newly negotiated loan modification clearly state that at least 30% of your gross income should be allocated for loan repayment. There might also be other surcharges that are to be taken into consideration. The amount and extent of information you have to divulge to the lender varies from one lender to another.
You have legal means to stop the sale and save your home, regardless of the circumstance. There are specialized firms that can help you stay in your home, and in many cases, have legal means to help you fight to stay in your home, even if you’re in the final steps of foreclosure. Sometimes people just need time to find a new place to live, and just want time to walk away. Other times, borrowers want to fight the banks, and stay in their home. These firms have been known to assist homeowners in both areas. The banks have left people little choice in the matter. They have not responded to the needs of the lender, and left them no alternative but to fight.
Obama’s Loan Modification Plan (HAMP) Home Owner Affordability And Stability Plan. Considering the present economic crisis that has hit the country, present government to aid the homeowners has announced an all-inclusive package worth $75 billion. If anyone wishes to be a recipient of this bailout program, certain predetermined criteria are to be met which are described below: The current mortgage amount must be less than $729,750 and the mortgage must have been sanctioned before January 1, 2009. The mortgage repayment is equal to more than 31% of home owner’s gross income.
Learn more about Obama Mortgage Relief Plan Qualifications.
Author: John Roney
This author has published 102 articles so far. More info about the author is coming soon.