A home loan modification, sometimes referred to as the Obama Loan Modification Program, permanently restructures the interest rate and some the terms of an existing mortgage in order to make the loan more affordable for the homeowner. Countrywide Loan Modification is granted only upon the existing lender's approval. Who qualifies for the Obama loan modification plan?
President Obama’s Affordability and Stability Plan will distribute up to $75 billion dollars to help homeowners stay in their houses through home loan modification. Even so, the Obama Loan Modification Program will not be able to help everyone at risk of loosing his or her home. The ultimate goal of the Obama Loan Modification Program is to help up to 9 million homeowners to stay in their homes. However, the bank or Mortgage Company’s participation in the loan modification is strictly voluntary. The Loan Modification plan offers monetary incentives to lenders who will modify a homeowner’s mortgage, but in the end, it is up to each individual bank if they will be willing to modify the mortgage.
Obama Loan Modification Program general guidelines for eligibility:- You must live in the home as your primary residence to be eligible for the Obama Loan Modification Program
- Before you can apply for a home loan modification, your current mortgage must equal 31% or more of your monthly income
- You must be able to provide proof of your income
- You do not have to be behind in your mortgage payments to apply for a home loan modification program
- Home Loan Modification Includes second mortgages
- There are no fees from your lender to apply for a loan modification
- Your current mortgage amount should be less than $729,750
- You are facing a financial hardship that will impact your ability to pay your mortgage
- Your current mortgage should have been taken out before January 1, 2009
You can get your best answer for should i refinance my mortgage with our refinance advisors and also learn about President Obama Refinance Plan.
Author: Bonita Bradley
0 comments:
Post a Comment