Stimulus Mortgage Help – Can Federal Stimulus Package Save Your Mortgage?
Article by Bryan Hendersen
What can the Federal Stimulus Package do for you? As of 2009, Obama’s administration created a plan to help homeowners avoid foreclosing on their homes or filing for bankruptcy. Known as the Home Affordable Plan, mortgage loans can be modified or qualify for refinancing under new guidelines. Many homeowners who qualify will receive the assistance they need. Here’s why:
* A modified mortgage payment each month will not be over 31% of a homeowner’s gross monthly income, if the payment (including taxes, insurance, and HOA fees) is currently above that amount.
* Interest rates are now 5.16% – a significant drop from 6.5% it was in 2008.
* Options available for homeowners include receiving a deed in lieu of foreclosure, extending the term of the loan, refinancing, or modifying the loan payments.
* Banks are eager to help in order to receive their 00 in government incentives for every loan modification and refinance they complete.
* The Federal Housing and Urban Development department (HUD) is available for free assistance in providing you with financial information in dealing with your lender and housing costs.
* You can contact lenders directly via phone or their websites to inquire about the options available to you, and to complete an application.
* As a homeowner, you need to be certain you qualify before you apply. The following guidelines are necessary for receiving a mortgage modification:
o Your loan must be owned by Fannie Mae or Freddie Mac.
o Your balance owed for the house must be more than 105% of its market price.
So before you complete an application, make sure to be aware of the following:* All forms submitted must be completed, including any documents requested, with all financial information accurate.
* If you are behind on your mortgage payments, you will need to include a hardship letter stating your reasons and a plan of action. This should be done well before you are given a Notice of Default.
* Your patience, tact, and persistence, are key in dealing with the process of attempting to revise your mortgage and keep your home.
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