| Obama's Loan Modification Plan |
| Articles - Mortgage |
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Obama's Loan Modification Plan was put in place to help homeowners refinance or modify their loans for more affordable mortgage payments.
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. You must be living in the home 2. Cannot be used for second mortgages 3. You must show proof of income 4. Your current home loan must be 31% or more of your gross monthly income As many as 6 million families are predicted to face foreclosure in the next couple of years. The relentless and fast paced recession in the economy and in the housing market has produced adverse consequences for homeowners throughout the the US . Millions of reliable families who render their monthly mortgage payments timely have had the value of their property fall and under the circumstances are now ineligible to refinance to lower mortgage rates. Meanwhile, millions of hard-working Americans are facing challenges trying to stay current on their mortgage payments after having their hours cut or being terminated. In the last 14 months alone more than five million jobs have been eliminated and millions of hard working families are now allocating more than 40 or 50 percent of their income towards their monthly mortgage payment. The Process When a loan modification application is presented by a homeowner, it is scrupulously evaluated to judge the profitability to the investor or the probability of loss. The "Net Present Value Test" is used to decide what will bring more cash flow to the investor-Foreclosure or Modification. Their decision is not based on what's best for the homeowner. It is entirely based on what is more financially rewarding to the investor. If modification is not in the favor of the investor, they will not approve your application. For this reason legal assistance is available to homeowners. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Looking to find the best information on Home Loan Modification, then visit www.JaninAndAssociates.com to find the best advice on how to prevent foreclosure . |