Are you behind in your home loan? Are back payments and loan fees mounting at this very minute? Well, you are not alone. Millions of homeowners will receive help from loan modifications through the home stimulus package.
President Obama's administration has assigned 75 billion dollars to help boost the housing market and help curtail foreclosures in the United States. Financial incentives are being extended to banks to modify existing mortgages in order to achieve lower payments for the borrowers who are over their head in their mortgage.
Banks and lenders on the approved list have several methods they can utilize to achieve a lower monthly payment. Interests rates may be lowered to as low as 2%. Loan terms may be extended to as long as 40 years. Late fees and a portion of principal could be reduced or forgiven.
The loans to be modified must be owned or serviced by Fannie Mae or Freddie Mac. The property must be your primary residence, a vacation home or a rental property. The loan must have been originally written before Jan 1, 2009, and the amount must not be more than $729,750.
In order to apply for a modified loan, you must be able to prove that you are in financial hardship. This means that due to circumstances beyond your control your income has decreased or your expenses have increased. Medical bills, job loss, divorce, military service, or death of a spouse are all possible reasons. Documentation must be provided for every aspect of this. Your current house payment must exceed 31% of your monthly gross income. This payment also includes taxes, insurance, and any property association dues.
Proof must also be given that you will be able to pay the new mortgage payment. You need to be able convince your lender of your commitment to the community and to the mortgage.
To get help right away,
click here for more information about the
home stimulus package
