Has The Obama Plan Aided Home owners So Far
Since real estate investment situation some time agomany householders have realized them selves facing foreclosure on their own residence. Visit loan modfication in california to learn more.
And they are affected because the mortgage loan trade had applied specifications with regard to authorization which were a lot more loose than in any other time in history, most peoplesimply over extended themselves with regards to theirhome loan repayments.
While they meet the expense of their monthly billsat the time few individuals had enough funds in source to cover the "rainy day" segments of their life. They never included the loss of a job due to the poor economic issues thatwe have experienced during the lastseveral years. Likewise few homeowners truly planned for the surge in their property payments when their flexible rate mortgage (ARM) rate increased after a year or two years into their mortgage. This coupled with few raises on their job, as a resultpoor economy put people into some dire economic straits.
Others have realized themselves managingunexpected health concernsthat has either caused a decrease in their income or a huge increase in expenses because of therising expense ofmedical care.
Whatever reason has brought you to the brink of property property foreclosure you still need help in trying to salvage your real estate.
One such method of help is what's generally referred to as the Obama Foreclosure Help plan, which is also referred to as the Making Home Affordable or Obama Mortgage plan. You may or may not meet the criteria for help through thehome loan modificationportion of this plan.
Below are a few terms of the home loan modificationstrategy to enable you to make a decision if you qualify:
You will need to have income from some source
You must own AND occupy a one to four unit residenceYour loan must have started prior to Jan. 1, 2009
Your loan must be owned or backed by Freddie Mac or Fannie Mae
Your unpaid mortgage principal balance must be fewer than $729,750
Your current mortgage payment amount must be more than 31% of your current gross monthly income
You will have to be able to show that a major change has happened in either your net income or your expenses which have or will affect your ability to pay your current mortgage payment
If your circumstance meets this criteria then you may get your lender to lower your interest rate by as much as 2 percent. Their goal would be to get your monthly payment into the 31% to 38% range of your monthly income.
The Obama Mortgage will not lower the total amount you owe on your mortgage. If you can qualify and obtain a home loan modification you should have a lower monthly payment because the interest portion of your monthly payment will be less.
If you are not behind on your mortgage repayments might even qualify for a loan modification if you can show a lower income amount due to current economic conditions. A good source is mortgage loan modification california on this subject.
You may also qualify to have the loan refinanced into a lower fixed rate mortgage vs. an adjustable rate home loan. This could significantly lower your monthly payments. A lot of people who are behind on their mortgage payments and inching close to foreclosure may not be able to are eligble for a refinance of this type and will need to investigate the mortgage loan modification part of the Obama Foreclosure Help plan.