The question everyone is considering is how loan modifications will be affected with President Obama refinance mortgages stimulus package. Let's begin with what a loan modification actually is. A loan modification, or a loan workout, is an agreement with your bank that may allow you to keep your home, and changes the terms of your current home loan. When borrowers are facing financial difficulty and wanting to keep their home they live in, banks are willing to negotiate and help the borrower.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis.
Homeowners who have lost their job, income, have high debts, or other financial problems will need to write a "Financial Hardship" letter stating the facts about their finances. Everything from debts, to income, need to be included in this letter. Also, be sure to hand sign the letter as well as hand write it. If you are a homeowner who has been able to keep up and pay your mortgage on time and in full for 12 consecutive months you will be able to refinance your home loan into a fixed rate 4% mortgage. If you have been late on a payment that is ok, however as long the payment was not over 30 days late you will be ok.
Target mortgage rates near or at 4% provisions could be introduced to encourage lenders to offer fixed rate mortgages at 4%. Since mortgage rates often times are not and can not ultimately be controlled, the government would be subsidizing the difference between the targeted rate and current mortgage rates. More loan modifications - proposed loan modification plans include reducing the current monthly payment for troubled homeowners to 31% of their gross monthly income. The government would assist by sharing lenders losses and pay some of the banks costs.
In President Obama's new bills, The American Recovery and Reinvestment Act and the Homeowner Affordability and Stability Plan there are items specifically designated to create more successful home loan modifications that could be your answer if you are facing foreclosure. To determine how the new plan will directly affect your chances of receiving a loan modification order and download the Complete Loan Modification Kit which provides you with all the forms, document templates and how-to guides you will need.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis.
Homeowners who have lost their job, income, have high debts, or other financial problems will need to write a "Financial Hardship" letter stating the facts about their finances. Everything from debts, to income, need to be included in this letter. Also, be sure to hand sign the letter as well as hand write it. If you are a homeowner who has been able to keep up and pay your mortgage on time and in full for 12 consecutive months you will be able to refinance your home loan into a fixed rate 4% mortgage. If you have been late on a payment that is ok, however as long the payment was not over 30 days late you will be ok.
Target mortgage rates near or at 4% provisions could be introduced to encourage lenders to offer fixed rate mortgages at 4%. Since mortgage rates often times are not and can not ultimately be controlled, the government would be subsidizing the difference between the targeted rate and current mortgage rates. More loan modifications - proposed loan modification plans include reducing the current monthly payment for troubled homeowners to 31% of their gross monthly income. The government would assist by sharing lenders losses and pay some of the banks costs.
In President Obama's new bills, The American Recovery and Reinvestment Act and the Homeowner Affordability and Stability Plan there are items specifically designated to create more successful home loan modifications that could be your answer if you are facing foreclosure. To determine how the new plan will directly affect your chances of receiving a loan modification order and download the Complete Loan Modification Kit which provides you with all the forms, document templates and how-to guides you will need.
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