What is the deal with the Obama foreclosure plan
Since real estate property situation not long agomany householders have realized them selves facing foreclosure on their own property. Visit loan modfication in california to learn more.
And they are affected because the mortgage loan business had applied specifications with regard to authorization which were much more loose than in any other time in history, lots of peoplesimply over extended themselves with regards to theirhome loan repayments.
While they meet the expense of their monthly premiumsat the time few individuals had enough funds in park 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 adaptable 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 discovered themselves working withunexpected medical issuesthat's either caused a decrease in their income or a huge increase in expenses as a resultrising price ofhealthcare.
Whatever reason has brought you to the brink of property foreclosure you still require assistance in trying to salvage the house.
One such method of help is what's generally referred to as the Obama Foreclosure Help plan, which is also known as Making Home Affordable or Obama Mortgage plan. You may or may not qualify for help through the loan modification portion of this plan.
Below are a few terms of the home loan modificationstrategy to help you establish if you qualify:
You must 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 less than $729,750
Your current mortgage payment amount must be in excess of 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 obligations which have or will affect your ability to cover your current payment
If your predicament 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 bank loan. If you can qualify and obtain a loan modification you should have a lower monthly expense because the interest portion of your monthly payment will be less.
If you are not behind on your mortgage payments you might still be able to get 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 might also qualify to have the loan refinanced into a lower fixed rate mortgage vs. an adjustable rate house loan. This could significantly reduce your monthly payments. A lot of people who are behind on their mortgage payments and inching close to foreclosure may not be able to be eligible for a a refinance of this type and will need to investigate the home loan modification element of the Obama Foreclosure Help plan.