With the recent economic downturn, the United States has been hit harder than anyone, in particular the housing market and mortgage industries. Companies that are cutting costs by laying off workers render it impossible for these people to repay loans and mortgages that they have.
Many people, good people, are facing home foreclosure. That's why the loan modification program presented by President Obama could be the panacea many homeowners seek.
The plan outlines several terms for helping homeowners avert forclosure.
Things To Know:
Homeowners who are having trouble paying their mortgages in a timely manner get home loan modifications. With these programs, their lender will extend the payment period and fix the borrower's interest rate to help them pay.
A homeowner must meet certain criteria to qualify for the loan modification program. Foremost, the mortgage must be less than $729,500 and signed before Jan. 1, 2009. Homeowners also must produce authentic mortgage paperwork.
The second condition is that you are required to furnish a financial hardship letter, written and signed by yourself. In this letter, you are required to explain the reasons for being unable to pay off the loan on time.
Thirdly, you have to provide concrete documentation indicating that you approve the revised payment and are capable of paying it. And for this, you need to fill an income versus expenses budget sheet. This is perhaps, the most important condition.
You have to address the bank's loss mitigation department, which will review your loan and stack it against the new program's terms to determine if you qualify for it. You'll be able to communicate with your lender, figuring out the best way to modify your home loan.
However, if you do not conclude to a common solution with the bank or your lender, then you may seek the help of a reputed home loan modification attorney. An attorney will certainly help in choosing the best option by explaining the whole procedure.
Thus, it is essential for homeowners to stay aware of the home loan modification procedures to avail the benefits that it offers. - 29904
Many people, good people, are facing home foreclosure. That's why the loan modification program presented by President Obama could be the panacea many homeowners seek.
The plan outlines several terms for helping homeowners avert forclosure.
Things To Know:
Homeowners who are having trouble paying their mortgages in a timely manner get home loan modifications. With these programs, their lender will extend the payment period and fix the borrower's interest rate to help them pay.
A homeowner must meet certain criteria to qualify for the loan modification program. Foremost, the mortgage must be less than $729,500 and signed before Jan. 1, 2009. Homeowners also must produce authentic mortgage paperwork.
The second condition is that you are required to furnish a financial hardship letter, written and signed by yourself. In this letter, you are required to explain the reasons for being unable to pay off the loan on time.
Thirdly, you have to provide concrete documentation indicating that you approve the revised payment and are capable of paying it. And for this, you need to fill an income versus expenses budget sheet. This is perhaps, the most important condition.
You have to address the bank's loss mitigation department, which will review your loan and stack it against the new program's terms to determine if you qualify for it. You'll be able to communicate with your lender, figuring out the best way to modify your home loan.
However, if you do not conclude to a common solution with the bank or your lender, then you may seek the help of a reputed home loan modification attorney. An attorney will certainly help in choosing the best option by explaining the whole procedure.
Thus, it is essential for homeowners to stay aware of the home loan modification procedures to avail the benefits that it offers. - 29904
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