If you are in an unaffordable mortgage, you should consider a home loan mortgage modification. Millions of Americans will take advantage of this assistance in the 2009 Stimulus Bill and manage to save their home.
The Stimulus Bill funds 75 billion dollars to rescue the plummeting housing market and help reduce the growing foreclosure rate. Home foreclosure is at an all-time high in the United States. The Bill provides financial incentives to banks and lenders to actually rewrite existing mortgages and provide a monthly payment that homeowners can afford.
The goal is a payment that less than 31% of the gross monthly household income. The banks achieve this new payment through using one or all of the following methods: interest rate reduction, lengthening the term of the loan, waiving late fees, and even forgiving a portion of the actual principal.
To apply, homeowners must meet the following guidelines:
� The home must be your primary residence.
� The original loan must have been signed on or before January 1, 2009.
� The loan cannot be for more than $729,750.
� Your bank must be must be on the approved list. .
� The loan must be backed or serviced by Fannie Mae or Freddie Mac.
� The house payment you are currently obligated for, along with taxes, insurance and association dues, must be MORE than 31% of your gross monthly income.
� You must have a verifiable case of financial hardship. This means that you have suffered from reduced income or increased expenses due to events beyond your control.
� You must also be able to document that you have the financial means to pay the new payment. They also need to be convinced that you will!
All documentation must be provided concerning your budget and finances.
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