The question everyone is considering is how loan modifications will be affected with President Obama refinance mortgages stimulus package. Let's begin with what a loan modification actually is. A loan modification, or a loan workout, is an agreement with your bank that may allow you to keep your home, and changes the terms of your current home loan. When borrowers are facing financial difficulty and wanting to keep their home they live in, banks are willing to negotiate and help the borrower.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis.
How will President Obama's new bill affect loan modifications to help you if you are facing foreclosure? Some of the ideas that have been proposed that could have been included or still may be are: A moratorium on foreclosures - it could be proposed that troubled borrowers are allowed up to 90 days to keep their homes or work out a new loan modification with their lender. Expand credit for home buyers - there is currently a $7,500 tax credit available to first time home buyers. It could be expanded to all home purchases or increased to up to $15,000
If your home has lost its value as millions of home have due to the housing market troubles, you can now refinance or modify a mortgage even if you owe up to 5% more on the home than the mortgage has remaining on its balance. Home loans backed by either Freddie Mac or Fannie Mae will be eligible for automatic 4% home mortgage modification, regardless of the homeowners financial position. If a homeowner does indeed modify their home loan through Fannie Mae or Freddie Mac, their mortgage payment would not exceed 31% of their gross monthly income.
In President Obama's new bills, The American Recovery and Reinvestment Act and the Homeowner Affordability and Stability Plan there are items specifically designated to create more successful home loan modifications that could be your answer if you are facing foreclosure. To determine how the new plan will directly affect your chances of receiving a loan modification order and download the Complete Loan Modification Kit which provides you with all the forms, document templates and how-to guides you will need.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis.
How will President Obama's new bill affect loan modifications to help you if you are facing foreclosure? Some of the ideas that have been proposed that could have been included or still may be are: A moratorium on foreclosures - it could be proposed that troubled borrowers are allowed up to 90 days to keep their homes or work out a new loan modification with their lender. Expand credit for home buyers - there is currently a $7,500 tax credit available to first time home buyers. It could be expanded to all home purchases or increased to up to $15,000
If your home has lost its value as millions of home have due to the housing market troubles, you can now refinance or modify a mortgage even if you owe up to 5% more on the home than the mortgage has remaining on its balance. Home loans backed by either Freddie Mac or Fannie Mae will be eligible for automatic 4% home mortgage modification, regardless of the homeowners financial position. If a homeowner does indeed modify their home loan through Fannie Mae or Freddie Mac, their mortgage payment would not exceed 31% of their gross monthly income.
In President Obama's new bills, The American Recovery and Reinvestment Act and the Homeowner Affordability and Stability Plan there are items specifically designated to create more successful home loan modifications that could be your answer if you are facing foreclosure. To determine how the new plan will directly affect your chances of receiving a loan modification order and download the Complete Loan Modification Kit which provides you with all the forms, document templates and how-to guides you will need.
No comments:
Post a Comment