In March of this year, the United States government announced an initiative that was set into motion in order to help homeowners keep their homes and avoid the threat of foreclosure. This plangives every homeowner in financial duress a glimmer of light in an area that seemed so dark and it is called the Home Affordable Modification.
This modification plan was implemented in March by President Obama and is meant to help Americans hang on to their primary home. The main concept of this plan is to both reduce the homeowners monthly mortgage payment to a level that the lender can agree to but more importantly, a payment that the homeowner can fit into their budget.
This plan has the potential to make great strides in helping both the lenders as well as the homeowners, and seventy five billion dollars has been allotted for it. It not only is it designed to reduce personal debt, but it also helps in alleviating the stress that homeowners facing potential ruin are feeling.
Who is eligible for this plan?
If you have found yourself in financial despair over mortgage lenders who are threatening foreclosure then the best thing you could do is quickly apply for this initiative. In the process you can also protect your future credit score. There are set limits that will help you find out if you are qualify.
One of the biggest factors will be when your mortgage started. Any home mortgage that originated before January 1, 2009 may be eligible.
It is vital that your home be both owner occupied and your primary residence or you will not qualify. To qualify, the property cannot be an investment and the house cannot be left sitting empty under the terms of this plan. The basics are that the house be your current residence. You will have to document proof of residency with some sort of bill with your name and address on it during the application process.
How much money you make each month needs to fall into a specific area and guidelines. Speak with a professional before you continue the process.
During the application process, there will be several factors being evaluated with your income, expenses and assets being one of the biggest aspects. Be patient and take care to include everything you own that has any real value. Failure to disclose anything could lead to future difficulties and keep you from qualifying for this program or government assistance in later years.
If you are going through a bankruptcy, you may still qualify. These kinds of suits are common during times of financial turmoil and may not exclude you from the initiative.
It is important that you apply for this modification soon because there is no telling how long interest rates will remain low and the initiative will then be cut off. However, there will still be payments processed after this time.
One of the most interesting facets of this plan is that the government has decided to include an annual cash bonus for those homeowners who apply early, and are able to make their newly adjusted payments on time.
The Home Affordable Modification Plan was put into place to help homeowners and their lenders avoid foreclosure and excessive mortgage payments. It is just one way that the government is trying to help resolve some of the major economic issues we are facing.