Obama’s Loan Modification Plan was put in place to help homeowners refinance or modify their loans for more affordable mortgage payments.
The sad fact is a great part of the money go to the banks and they’re not obligated to adhere. Only homeowners who are up-to-date on their mortgage account and whose loans are belong to Fannie Mae and Freddie Mac are eligible for Obama’s Loan Modification Plan. The plan is leaving millions of U.S. homeowners at risk of experiencing foreclosure susceptible & out of the plan.
Here are some general customary criteria for basic eligibility for this program:
1. The home must be owner occupied
2. Cannot be used for second mortgages
3. You must show proof of income
4. Your current mortgage must be 31% or more of your gross monthly income
As many as 6 million families are projected to face foreclosure in the next couple of years.
The scathing and fast paced recession in the economy and in the housing market has produced adverse consequences for homeowners throughout the America . Millions of reliable families who pay their monthly mortgage payments punctually have had the value of their property fall and consequently are now incapable to refinance to lower mortgage rates. Meanwhile, millions of working people in the US are having difficulty staying current on their mortgage payments after being laid off or downsized. In the last 14 months alone more than five million jobs have been eliminated and millions of hard working families are now concentrating more than 40 or 50 percent of their income towards their monthly mortgage payment.
Application Process
When a loan modification application is turned in by a homeowner, it is carefully analyzed to decide the profitability to the investor or the possibility of loss. The “Net Present Value Test” is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. The homeowner’s best interest is not part of the decision making process. It is purely based on what is more financially beneficial to the investor. If modification is not in the favor of the investor, they will deny your application.
This is why legal assistance to homeowners is available.
Learn more about Home Loan Modification. Stop by Janian and Associates’s site where you can find out all about how to prevent foreclosure.
categories: Home Loan Modification, foreclosure, homeowners