Obama's Loan Modification Plan is aimed at assisting homeowners to better manage their monthly mortgage payments by refinancing their mortgage or by having their loan modified.
The sad fact is a great part of the money go to the banks and they're not mandated to heed. Only homeowners who aren't behind on their mortgage account and whose loans are with Fannie Mae and Freddie Mac are eligible for the Plan. The plan is leaving millions of U.S. homeowners in danger of facing foreclosure defenseless & out of the plan.
Here are some general routine precepts for basic eligibility for this program:
1. The home must be your primary residence
2. Not applicable to 2nd mortgages
3. Provide proof of your income
4. Your current mortgage must be 31% or more of your gross monthly income
As many as 6 million families are predicted to face foreclosure in the next couple of years.
The scathing and fast paced recession in the economy and in the housing market has produced adverse consequences for homeowners throughout the America . Millions of reliable families who pay their monthly mortgage payments punctually have had the value of their property fall and consequently are now incapable to refinance to lower mortgage rates. Meanwhile, millions of working people in the US are having difficulty staying current on their mortgage payments after being laid off or downsized. In the last 14 months alone more than five million jobs have been eliminated and millions of hard working families are now concentrating more than 40 or 50 percent of their income towards their monthly mortgage payment.
Application Process When a loan modification application is turned in by a homeowner, it is carefully analyzed to decide the profitability to the investor or the possibility of loss. The "Net Present Value Test" is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. The homeowner's best interest is not part of the decision making process. It is purely based on what is more financially beneficial to the investor. If modification is not in the favor of the investor, they will deny your application.
As such, homeowners are able to get legal assistance.
- 29904
The sad fact is a great part of the money go to the banks and they're not mandated to heed. Only homeowners who aren't behind on their mortgage account and whose loans are with Fannie Mae and Freddie Mac are eligible for the Plan. The plan is leaving millions of U.S. homeowners in danger of facing foreclosure defenseless & out of the plan.
Here are some general routine precepts for basic eligibility for this program:
1. The home must be your primary residence
2. Not applicable to 2nd mortgages
3. Provide proof of your income
4. Your current mortgage must be 31% or more of your gross monthly income
As many as 6 million families are predicted to face foreclosure in the next couple of years.
The scathing and fast paced recession in the economy and in the housing market has produced adverse consequences for homeowners throughout the America . Millions of reliable families who pay their monthly mortgage payments punctually have had the value of their property fall and consequently are now incapable to refinance to lower mortgage rates. Meanwhile, millions of working people in the US are having difficulty staying current on their mortgage payments after being laid off or downsized. In the last 14 months alone more than five million jobs have been eliminated and millions of hard working families are now concentrating more than 40 or 50 percent of their income towards their monthly mortgage payment.
Application Process When a loan modification application is turned in by a homeowner, it is carefully analyzed to decide the profitability to the investor or the possibility of loss. The "Net Present Value Test" is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. The homeowner's best interest is not part of the decision making process. It is purely based on what is more financially beneficial to the investor. If modification is not in the favor of the investor, they will deny your application.
As such, homeowners are able to get legal assistance.
- 29904
About the Author:
Looking to find the best information on Home Loan Modification, then visit www.JaninAndAssociates.com to find the best advice on how to prevent foreclosure .
No comments:
Post a Comment