Obama's Loan Modification Plan is supposed to help homeowners to afford their monthly mortgage payments by refinancing the current mortgages or by having their loans modified in some way.
Unfortunately the vast majority of the funds go to the banks and they're not forced to comply. Only those who are current on their payments and whose loans are held by Fannie Mae and Freddie Mac are eligible for Obama's Loan Modification Plan. The plan is leaving millions of U.S. homeowners in risk of foreclosure vulnerable & out of the plan.
Here are some general guidelines for basic eligibility for this program:
- You must live in the home as your primary residence
- Not available on second mortgages
- You must be able to prove your income
- Your current house payment must equal 31% or more of your gross monthly income
- You do not have to be delinquent to apply for this loan modification program
For more informations Please call us at 877-529-5090 or send us an email at info@stopbanks.com
As many as 6 million families are expected to face foreclosure in the next several years
The severe and rapid decline in the economy and in the housing market has created devastating consequences for homeowners throughout the country. Millions of responsible families who make their monthly mortgage payments on time have seen their property values fall and as a result are now unable to refinance to lower mortgage rates. Meanwhile, millions of workers in this country are struggling to stay current on their mortgage payments after loosing their jobs or being forced to take a reduction in work hours. Over 5 million jobs have been lost in the past 14 months and millions of hard working families are now spending more than 40 or 50 percent of their income towards their monthly mortgage payment.
President Obama's Homeowner Affordability and Stability Plan (HASP) introduced earlier this year, offers assistance to over 7 million homeowners who are currently making a good-faith effort to stay current on their mortgage payment s. HASP supports a recovery in the housing market by stabilizing home prices in communities hardest hit by foreclosures. The program brings lenders, servicers, borrowers, and the government together to share in the cost of restructuring mortgages so homeowners can afford their monthly mortgage payments.
Homeowner Stability Initiative offers reduced monthly payments for 3-4 million "at-risk" homeowners allowing them to continue paying off their mortgage and avoid foreclosure. The goal of this program is to reduce the amount that homeowners owe each month to a lower, more affordable amount. Under this initiative, loan servicers are required to reduce monthly mortgage payments to less than 38% of the borrower's income by restructuring or modifying the current loan. Anyone with a high combined mortgage debt compared to income or who is "upside down" on the mortgage may be eligible for a loan modification. Borrowers who are in adjustable or Subprime loans with high interest rate are also eligible. Mortgage loans can be modified by reducing the interest rate for a specified amount of time, extending the term of the loan (to 40 years instead of 30 years), and/or principle reductions. Servicers covering more than 75% of the loans in the country have begun modifications under Obama's Homeowner Affordability and Stability Plan.
2nd Lien Program
Millions of workers have lost their jobs or had their hours cut, are now struggling to stay current on their mortgage payments. In the next several years, as many as 6 million families will face foreclosure and millions more will struggle to keep up with the rising interest rate on their mortgages. Second liens contribute to those numbers of families who are unable to afford their housing payments. It is estimated that up to 50% of at-risk mortgages currently have second liens. The 2nd Lien Program offers homeowners a way to lower payments on their 2nd mortgage. This program coordinates with the first mortgage modification process to lower payments on 2nd liens, helping to keep more than a million Americans in their homes. In some cases, the servicer may accept a lump-sum payment from Treasury to eliminate some or all of a second lien. This program shares the costs with lenders who participate in reducing payments for homeowners with 2nd mortgages.
I don't need legal assistance; my Mortgage Company has sent me a letter offering to modify my mortgage.
With all of the Government programs in place offering incentives to lenders, why do I need legal assistance with my loan modification?
It is true that there are financial incentives for lenders willing to modify mortgages. But, For a lender to be eligible for these incentives, they need only to OFFER assistance to the homeowner. By sending a letter to the homeowner, OFFERING to modify the mortgage, lenders have fulfilled their requirement and are then eligible for Government subsidizing. They do not actually have to follow thru with the loan modification.
Why can't I just apply by myself?
When a loan modification application is submitted by a homeowner, it is thoroughly reviewed to determine the profitability to the investor or the likelihood of loss. The "Net Present Value Test" is used to determine what will create more cash flow to the investor-Foreclosure or Modification. Their decision has nothing to do with what is in the best interest of the homeowner. It is solely based on what is more profitable to the investor. If modification is not in the economic interest of the investor, they will decline your application.
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