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Mortgage Modifications 2009

The government has funded a mortgage modification program that encourages banks to rewrite existing mortgages for homeowners who have experienced financial hardship and are struggling with their house payment. Maybe you qualify!

Is your house payment becoming more and more difficult with every passing month? If you qualify, you could get a lower house payment by applying for this program. The target payment is below 31% of a homeowner's gross monthly income. This payment amount also includes property taxes, insurance, and homeowner dues.

The mortgage is actually rewritten, not just refinanced. The banks receive a financial bonus for doing these modifications. The government puts several tools at their disposal to achieve the desired house payment. They can lower interest rates, lengthen loan terms, reduce principal, and waive late fees.

The really great thing is that you receive a financial incentive, too! For every year that you are current on your house payment, you will receive $1000. per year, up to 5 years! That's a sizeable portion of principal you can chew off of your mortgage. Hopefully, the new monthly payment will be affordable and be much easier for you to avoid being late.

The first thing you must ascertain is if your lender is on the approved lender list for the federal program. Then you must be sure your loan is backed by Fannie Mae or Freddie Mac. Was the loan signed on or before January 1, 2009? And, the loan amount can't be over $729,750. You need to understand, also, that only loans on primary residences are eligible.

The financial side of the application is slightly different than a standard loan application. You must establish financial hardship which is a decreased income or increased expenses that you don't have control over. At the same time, you must establish that you have sufficient means to pay the new mortgage payment in the long-term.
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To get help right away, click here for more information about the home stimulus package

Source - The Mortgage Modification Program - Timely Help For Homeowners

Ed Butowsky on Fox News discussing mortgage modifications - August 1, 2009

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Housing Bubble Burst 2009

Question: Would you allow me to speak for all Yahoo posters in thanking Bush for 8 great years of leadership?

http://www.foxnews.com/politics/2009/01/15/bush-set-farewell-speech-country/

Tonight, America's best president will give his farewell speech. He has done a great job in most peoples opinions.

He inherited Clintons recession
He inherited Clintons terrorist attack on 9-11
He inherited Clintons housing bubble burst
He interited Clintons Wall Street collapse
He inherited Clintons unemployment problem
He inherited Clintons weak levies in New Orleans.

And despite all this, he kept us safe and moral.

I speak for all Americans when I say thank you GW Bush, for giving us so much, and for not asking anything in return, fact.

thank you.

Answer: You will feel much better when you sober up

12/7/2009 Part 1/2 Peter Schiff On FOX Business: Has The Bubble Burst On Gold?

Mortgage Relief Obama 2009

Homeowners who are struggling to pay their mortgages are wondering what options they have other than foreclosure. One avenue for relief is a mortgage loan modification.

A mortgage loan modification means the terms of a loan are adjusted. Lenders decide how this is done and their decisions are made on an individual basis. It is important that you are very careful when you are negotiating these changes and you will benefit from a licensed financial counselor's advice. Make sure you get a deal that will really help you. If you change the terms of your loan but you are still expected to pay the same amount each month, you will be in the same situation after modification as you were before.

In the past it was very difficult to get a loan modification and there was no uniform, predictable process. The Obama administration passed the Making Home Affordable Act and made it effective December 31, 2012. Homeowners who are finding it hard to make mortgage payments that are more than 31% of their income are eligible for home loan modifications.

Naturally, there are some added criteria in order to be eligible for this plan. You must live in the home for which the mortgage is being modified. Your loan must have been negotiated and signed before 2009 and Freddie Mac or Fannie Mae must insure the loan.

There are many benefits to being approved for a loan modification through the Making Home Affordable Plan. Part of the plan is a Homeowner Stability Initiative, which has earmarked $75 billion in order to motivate lenders to offer modification and to motivate homeowners to pay their modified mortgages on time. Lenders get payments if they negotiate a successful modification and collect the payments. Homeowners get incentive payments if they make their payments on time, which are applied to their principal.

There are many ways to go about obtaining a loan modification but none of them work as well as going through the Making Home Affordable plan. This plan has clear, consistent procedures outlined which lenders follow when modifying a mortgage loan. First they reduce the interest rate, then, if they need to, they extend the length of the loan. Forbearance of principal is the last option. It is very easy to understand.

In order to qualify for a mortgage loan modification, you will need to contact a financial counselor and discuss the process with them. You must write a hardship letter to your lender, which outlines the reason for your request and you will also have to submit paperwork to prove your financial situation and income.

Mortgage loan modifications are not new, but President Obama's plan for modifying loans has totally changed the process. This plan makes it possible to prevent foreclosure and to stay in your home.
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For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/

Article Source: ArticlesBase.com - Answers to Your Mortgage Loan Modification Questions

Democracy Now Headlines- Fri. March 06, 2009