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Obama Loan Modification Homeowner Stability Plan
November 5, 2009 by Anthony M. Flores · Leave a Comment
The U.S recession has really hurt the economy and has severely increased the jobless rate here in the country.
Perhaps one of the first signs of an ailing economy is the housing market. With a considerable amount consumer debt, folks are increasingly falling behind on their mortgage payments. To assist homeowners in reducing their housing payments, President Obama’s has come out with the Loan Modification Homeowner Stability Plan.
President Obama designed the Homeowner Stability Loan Modification plan to help homeowners reduce their monthly mortgage payment.
How does Obama’s Loan Modification plan work?
1. Reduce the interest rate:
The homeowners loan will be allowed a 2-6 % interest rate based on the homeowners qualifications. Sometimes reducing their monthly payment by 20-40%.
2. Loan principal reduction:
Principal reduction is used to lower the balance thus resulting in lower payments. The loan modification reduction is based on current market value and is not guaranteed by the Obama plan. Each case is unique based on hardship.
3. Monthly reduced payments.
Homeowners can reduce their monthly payment by contacting their lender.
The Obama administration has attempted to lower the qualifications to 38% of the homeowners monthly income.
4. The lenders incentive:
President Obama has made provisions in his loan modification plan to give away incentives of $1000 to servicers if they abide by all the rules and regulations of the modification plan.
In addition, the homeowner will receive $1000 of principal reduction for the next 5 years as long as they make their payments on time.
5. Payments for successful performance of debtors:
A homeowner can highly benefit from the loan modification plan by successfully meeting the required guidelines of paying the installments. This automatically decreases the principal amount of the loan that the debtor has borrowed. This is an added benefit of this loan modification plan.
It is necessary for a borrower to keep all the papers in place to prove that the loan modification plan was signed. This will help the homeowners to keep a track of all the current happenings in the loan modification program.
Obama’s plan for loan modification has been welcomed by homeowners who are facing difficulties to repay their loans and is proving to be a hit amongst homeowners, who are on the verge of home foreclosures.
Anthony Flores is a recognized authority in http://www.modificationnetbranch.com and loan modification processing questions.Visit our site to see if you qualify for loan modification today!
categories: foreclosure,loan modification,obama stability plan,stop foreclosure,loan modifications,finance,real estate,money,business
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Did You Receive An Eviction Notice? Don’t Do Anything Until You Read This.
October 15, 2009 by Alfonso Inclan · Leave a Comment
Past week I received a question from one person worried to receive an Eviction Notice:
“I have six months not paying my mortgage, and I am worried about it. My question is if the sheriff can take me out with my family anytime now?”
My response was: Nobody can take out you from your home if they dont have an EVICTION NOTICE FROM COURT. Period. You have to know the eviction process under your state eviction laws, though. Some states are into a JUDICIAL foreclosure system and others into a NON-JUDICIAL foreclosure system. The website foreclosurelaw.org has everything you need to know about it.
Generally, this is the whole EVICTION process (some states put different names on each one):
1. In Default.- (30 to 90 days late)
2.- NOTICE OF DEFAULT (NOD).- The 90th day being late, your bank will send you a Notice of Default, stating that if you dont pay, they will send your case to foreclosure.
3.- NOTICE OF SALE (NOS).- When you reach the 120th day being late on your payment, you will receive a Notice of Sale stating when and where will be the public sale of your home.
4. Foreclosure (FC).- After (generally) 2 months of the NOS, the foreclosure sale will be made. Some states take more months for this. (you can stay free at the property)
5. Reinstatement.- After the FC sale, there is a period of REINSTATEMENT, where you can apply to stay more in your property with the reason to find a mortgage that qualifies you to repurchase the property. (It is in around 50% of the states)
6.- EVICTION: Following the foreclosure sale, or the end of the reinstatement period, you will be reached by the new title-holder of the property asking you to leave the property. If the property was bought back by the same lender, they may give you some money to leave the property clean and in good condition (this is called Cash for Key). If you don’t leave, after 30 or 45 days they can start an EVICTION PROCESS AT COURT. The Judge will send you an EVICTION NOTICE including the date when you must leave. If you dont leave that day, the sheriff will go to the property to take you out and change the locks. If they lock the doors with your belongings inside, you cannot take them out anymore.
Under your eviction laws, you are protected until the last day. A homeowner can stay without making payments to the mortgage until the last day of the eviction notice.
REMEMBER THAT NOBODY CAN TAKE OUT FROM YOUR HOME JUST BECAUSE. THEY NEED AN EVICTION NOTICE FROM COURT ON HAND TO ENFORCE THE EVICTION LAW.
There are a lot of states allowing homeowners to stay into the property up 18 months without making payments to their mortgage. You need to check the laws of your state.
YOU WANT TO AVOID FORECLOSURE. Learn how to do it.
Remember, I am not an attorney, accountant, tax adviser or real estate guru giving legal, tax or financial advice. This blog is not a substitute for the advice of a competent attorney. Although I am a Financial Educator in the State of Arizona doing Foreclosure Consulting, Residential and Commercial Loans, Mortgage Training and Consulting, Real Estate investments, Business Coaching, Marketing and Credit Counseling since 2002, I do not claim to give you legal advice in this blog to your specific circumstances. This blog is intended to educate homeowners in default of their mortgage. Nothing enclosed in this blog should be construed to constitute advice for your personal circumstances. The information provided in this blog is provided just for personal information. Under no circumstances does the information in this content represent a legal recommendation to sell, buy or hold any property.
Learn more about the Eviction Notice. Stop by The Official Foreclosure Secrets Guide website where you can find out all about The Eviction Process and what it can do for you.
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Don’t Be Scared By An Eviction Notice. You Just Need To Know What To Do.
October 2, 2009 by Alfonso Inclan · Leave a Comment
Past week I received a question from one person worried to receive an Eviction Notice:
“I’m really worried because I have not paid my mortgage in six months. Can a police officer or the sheriff come for me and my family to take us out?
Response: An EVICTION NOTICE SIGNED BY A JUDGE FROM COURT must be shown in order to legally take you out from your home. Nobody can do this without this notice. Check your Eviction Laws, though, because every state is different, so you need to understand it very well. You can go to foreclosurelaw.org to find the legal rules for your case. Check also if your state is a JUDICIAL or NON-JUDICIAL system as this is very important to know.
Generally, this is the whole EVICTION process (some states put different names on each one):
1. In Default.- (30 to 90 days late)
2. Notice of Default (NOD).- At 90 days late, you will receive a Notice of Default from the lender, asking for the payment or your house will be foreclosed.
3.- NOTICE OF SALE: Generally at 120 days late on your mortgage, a Notice of Sale will arrive at your home from a lawyer or a trustee telling you what day and what place will be the auction of your home. You still have the option to negotiate your situation.
4. Foreclosure (FC).- After (generally) 2 months of the NOS, the foreclosure sale will be made. Some states take more months for this. (you can stay free at the property)
5. Reinstatement.- After the FC sale, there is a period of REINSTATEMENT, where you can apply to stay more in your property with the reason to find a mortgage that qualifies you to repurchase the property. (It is in around 50% of the states)
6.- EVICTION.- MUST BE AN OFFICIAL NOTICE FOR THIS. When the property is already sold, or the Reinstatement Period is over, you will be contacted by the new owner or a representative. They may offer you CASH FOR KEY if you leave the property the next couple of weeks (or more) in good conditions. If you didn?t leave after 30 or 45 days, the new owner MUST FILE A COMPLAINT IN COURT, to start the Eviction Process and get you out from the property under the eviction laws. Then, you will receive an EVICTION NOTICE from a Judge, stating that if you dont leave on a DETERMINED DATE, the sheriff will go to the property to take you and your family out of the property and lock the doors. You will not be able to take out your belongings after that.
As a consumer, you have rights. You can stay at your home without making payments, until you have a legal eviction.
NOT EVEN A SHERIFF CAN TAKE ANY HOMEOWNER OUT FROM HIS HOME WITHOUT THIS NOTICE FROM COURT.
There are a lot of states allowing homeowners to stay into the property up 18 months without making payments to their mortgage. You need to check the laws of your state.
YOU WANT TO AVOID FORECLOSURE. Learn how to do it.
Disclaimer: You need to know that I am not a lawyer, or an accountant, or a tax counselor giving you lawful, tax or financial advice. This information is not a replacement for the opinion of a experienced lawyer. Even though I am a Financial Educator in the State of Arizona doing Real Estate investments, Business Coaching, Marketing Coaching, Credit Counseling, Foreclosure Prevention, Residential and Commercial Loans, Mortgage Training and Consulting since 2002, I do not say I am giving you legal counsel in this article to your explicit situation. This article is planned to instruct homeowners in failure of paying their mortgage. Nothing within this article should be interpreted to represent legal advice for your individual conditions. The information given in this article is presented only for individual information. Under no conditions this article stand for a legal counsel to market, purchase or keep any house.
