Home Loan Modification: Obama’s Loan Modification Plan
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 a few general routine precepts for basic eligibility for this program:
1. The home must be your primary residence
2. Not applicable to 2nd mortgages
3. You must show proof of income
4. Your current mortgage must match 31% or more of your gross monthly income
As many as 6 million families are projected to face foreclosure in the next couple of years.
The relentless and fast paced recession in the economy and in the housing market has produced adverse consequences for homeowners throughout the the US . Millions of reliable families who render their monthly mortgage payments timely have had the value of their property fall and under the circumstances are now ineligible to refinance to lower mortgage rates. Meanwhile, millions of hard-working Americans are facing challenges trying to stay current on their mortgage payments after having their hours cut or being terminated. In the last 14 months alone more than five million jobs have been eliminated and millions of hard working families are now allocating 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.
This is why legal assistance to homeowners is available.
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 .
