Has The Obama Plan Assisted House owners To This Point
Because the property situation recentlymany householders have discovered them selves facing foreclosure on their own dwelling. Visit california loan modification
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And they are affected because the home loan business had carried out 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 can afford their monthly installmentsat 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 throughout the lastseveral years. Likewise few homeowners truly planned for the boost in their property payments when their adaptable rate mortgage (ARM) rate increased after a year or two years into their mortgage. This in addition to few raises on their job, because of thepoor economy put people into some dire economic straits.
Others are finding themselves managingunexpected medical issuesthat's either caused a decrease in their income or a huge increase in expenses a result ofrising expense ofheath care treatment.
Whatever reason has brought you to the brink of property home foreclosure you still require assistance in trying to salvage your home.
One such method of help is what's generally referred to as the Obama Foreclosure Help plan, which is also referred to as Making Home Affordable or Obama Mortgage plan. You may or may not meet the requirements for help through the loan modification portion of this plan.
Below are some terms of the home loan modificationstrategy to help you make your mind up 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 greater 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 revenue or your costs which have or will affect your ability to pay for 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 property finance 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 home loan payments might even qualify for a home loan modification if you can show a lower income amount due to current economic conditions. A good source is california loan modification
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You may as well qualify to have the loan refinanced into a lower fixed rate mortgage vs. an adjustable rate mortgage. 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 be eligible for a a refinance of this type and will need to investigate the loan modification area of the Obama Foreclosure Help plan. Current Mood: annoyed