homeowners
Home Loan Modification: Obama’s Loan Modification Plan
October 28, 2009 by Ginger Taylor · Leave a Comment
Obama’s Loan Modification Plan was put in place to help homeowners refinance or modify their loans for more affordable mortgage payments.
Sadly a bulk of the money go to the banks and they’re not bound to heed. Only people who are up-to-date on their mortgage and whose loans are through Fannie Mae and Freddie Mac are eligible for Obama’s Loan Modification Plan. The plan is leaving millions of U.S. homeowners in danger of dealing with foreclosure susceptible & out of the plan.
Here are some general customary criteria for basic eligibility for this program:
1. You must be living in the home
2. Cannot be used for second mortgages
3. You must show proof of 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 caused overwhelming repercussions for homeowners throughout the America . Millions of reliable families who meet their monthly mortgage payments timely have had the value of their property fall and consequently are now ineligible to refinance to lower mortgage rates. Meanwhile, millions of workers in the United States are facing challenges trying to stay current on their mortgage payments after being laid off or downsized. In the last 14 months alone well over five million jobs have been cut and millions of hard working families are now applying more than 40 or 50 percent of their income towards their monthly mortgage payment.
How To Modify A Loan
When a loan modification application is rendered by a homeowner, it is meticulously scrutinized to conclude the profitability to the investor or the chance of loss. The “Net Present Value Test” is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. Their decision is not based on what’s best for the homeowner. It is entirely based on what is more financially rewarding to the investor. If modification is not in the favor of the investor, they will deny your application.
For this reason legal assistance is available to homeowners.
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 .
