Loan Modification | Home Mortgage Solutions

Have you received your invitiation?

Jimmie — Fri, 03 Sep 2010 02:47:34 +0000

If you are a homeowner fighting to make your monthly mortgage then you may want to spend a little time researching your loan modification options. The Obama Administration’s adaptation of the previous Housing Bill created a large window of opportunity to individuals and families trying hard to keep their home. Under the current plan borrowers may modify, not refinance, their current home loan with Federal assistance.

The home loan modification program calls for participating lenders to decrease the individual borrower’s mortgage payments to a number that is approximately (but no greater than) 38% of the individual’s gross (monthly) income. Mortgage companies will receive $1000 for each loan modification that is granted to individuals who have signed up for the program, and will receive an additional $1000 each year, for up to three years, or as long as the borrower continues to make timely, complete payments according to the terms of the loan modification. Borrowers, for their participation, can get up to $5000 knocked off the principle of their loan should they make timely consistent payments for up to five years.

The Home Affordable Modification Plan is a win-win, assisting borrowers and lenders alike.

What this means to you, the concerned home owner, is that you now are available to receive the loan modification that you were hoping for. To accomplish this, contact your mortgage lender, HUD, or both to receive information detailing the requirements that need to be met to make this a reality. Do your research, gather your personal information, and get started.

It doesn’t matter if you are late in your payments, in default, or even in foreclosure, the option to modify your loan is available to you should you choose to stay in your current home or condo. If you have not already received your invitation in the mail, you can request the loan modification paperwork from your lender or from HUD. To be eligible for the program you must express both financial hardship and the ability and earnest desire to make the new lower payment. There are free Federal resources to help you if you get stuck, as well as, mortgage modification vendors that can help broker the deal.

How can new government programs help you to restructure your home loan?

Jimmie — Fri, 03 Sep 2010 02:46:13 +0000

In this economy it isn’t that difficult to find oneself out of work with a mortgage that still needs to be paid. Many Americans are facing layoffs, downsizing, and salary modifications that make paying bills a stressful and sometimes frightening experience. With a floundering economy and swimming home loans it is little wonder that families are defaulting on mortgages and foreclosures are on the rise. There is some good news on the horizon. Recent changes to the Obama Administrations home loan modification bill has provided the means for as many as four million Americans to restructure their home loans.

The program now requires that all participating lenders to reduce the borrower’s monthly payments to a figure that is no greater than thirty eight percent of the borrower’s gross monthly income. As an incentive towards lenders, the government will assist in bringing payments down to a figure not greater than thirty-one percent of the gross monthly income by contributing to the monthly payment.

As futher incentive, lenders will receive $1000 for each granted modification and an additional $1000 each year for up to three years as long as the borrower continues to make payments according to the modification. Borrowers can get up to $5000 knocked off the principle of their loan should they make timely consistent payments for up to five years.

What does all this mean for worried homeowners?

It means that their financial institutions have a carrot thrust before them and the homeowner’s ability to receive a loan modification is highly likely given all the inducements. It means that the homeowner can see their payments drop considerably, and with consistent payments to the servicer will see a cut in their principle during the lifetime of their loan. It means that a loan modification is within reach.

If you are living in Texas, and are late in your payments, in default, or even in foreclosure there are still options available to you should you choose to stay in your current domicile. Request the loan modification paperwork from your lender if you have not already received it in the mail. You will need to demonstrate both financial hardship and the ability to make the modified payment. Your hardship letter will be the most important piece of the package that you submit so you will want to begin drafting the correspondence as soon as possible. Utilize free resources such as those available from HUD in order to better familiarize yourself with the process. Remember that the lender has no desire to foreclose at this time and will attempt to work with you to keep your loan afloat.

Obama offers real hope for Home Owners

Jimmie — Fri, 03 Sep 2010 02:42:03 +0000

If you are a homeowner having difficulties making your month payment then President Obama’s Home Affordable Modification Plan offers you tangible assistance, not just inflated hope. The The Making Home Affordable Program requires that loan servicers and lenders who are insured by Government funds to participate. Home Affordable Modification Program (HAMP) and the Second Lien Modification Program (2MP) are two components of the plan and all servicers who are supported by Freddic Mac, Fannie Mae, or HUD must comply with the requirements of the program, which include offering the opportunity to their borrower’s prior to foreclosure proceedings.

Loan modifications are designed to reduce the borrower’s monthly payments, bringing them down to 38% of the borrower’s gross monthly income. That’s fantastic news for most Americans. Better still the government will assist in bringing the borrower’s payments down to a figure no greater than 31% of the gross monthly income by contributing funds to the monthly payment.

You may have already received a letter in the mail regarding the home loan modification program from your loan service provider. If you have not and you are late, defaulting, or in foreclosure and in need of immediate relief then by all means contact your loan servicer and request the forms. Once you have filled out the loan modification form and attached a letter of hardship you are halfway there.

If you feel, however, that you are inadequately prepared to handle the modification yourself and you are in the state of Texas be aware there are vendors available to help. Loan modification are available to handle all of the paperwork and communications with the loan servicer for you. Vendors usually have former loan officers or retired government workers who are more familiar with the ins and outs of the mortgage industry and are well-knowledged and able to assist you with the modification. Loan modification companies can be used to handle the process or just assist you with any question you may have.