How Can You Get a Mortgage Modification Under Obama's New Plan?
Obama has signed off on a new mortgage stimulus plan that should in theory give millions of homeowners the opportunity to refinance their mortgages at a lower rate with options to fix the New Obama Mortgage Plan at the new lower rate.
The 'HOPE for homeowners program' is a program introduced by George Bush which looks at mortgage refinance for lenders that are in difficulty and are struggling to make their repayments but have sufficient income to meet the payments on a new loan insured by HUD's Federal Housing Administration also known as FHA.
The entire goal for this plan was to stimulate the housing market all while keeping those struggling from losing their homes. The plan was created to help those homeowners that are facing foreclosure, potential buyers and current owner receive mortgage modification and refinancing.
Eligibility:
* home must be your only house and primary residence
* your mortgage pre-dates 1st January,2008
* can't make existing mortgage payments without help
* from March 2008 your total monthly payments have been more than 31% of your gross monthly earnings
* You have not been convicted of fraud in the last ten years, deliberately defaulted on debts and haven't obtained a mortgage by deceptive means.
* Must maintain a fully documented record of income and employment.
* must be prepared to agree to positive equity sharing both current and future
If you take this option you will not be able to take out a 2nd mortgage under the program for the first 5 years of the loan and you will have to agree to share the value of the positive equity, both current and any future increases for your home on a sliding scale over 5 years, after 5 years the amount of your share in the positive equity is 50% which is the most you can attain. This may sound a lot but versus loosing your home it is probably a better option.
With this new Make Home Affordable plan it may be the best time to apply for a home refinance or mortgage modification loan. You can potentially save hundreds of dollars a month which you can use for other necessities. Look into the program and do some research and get back on you feet.
The 'HOPE for homeowners program' is a program introduced by George Bush which looks at mortgage refinance for lenders that are in difficulty and are struggling to make their repayments but have sufficient income to meet the payments on a new loan insured by HUD's Federal Housing Administration also known as FHA.
The entire goal for this plan was to stimulate the housing market all while keeping those struggling from losing their homes. The plan was created to help those homeowners that are facing foreclosure, potential buyers and current owner receive mortgage modification and refinancing.
Eligibility:
* home must be your only house and primary residence
* your mortgage pre-dates 1st January,2008
* can't make existing mortgage payments without help
* from March 2008 your total monthly payments have been more than 31% of your gross monthly earnings
* You have not been convicted of fraud in the last ten years, deliberately defaulted on debts and haven't obtained a mortgage by deceptive means.
* Must maintain a fully documented record of income and employment.
* must be prepared to agree to positive equity sharing both current and future
If you take this option you will not be able to take out a 2nd mortgage under the program for the first 5 years of the loan and you will have to agree to share the value of the positive equity, both current and any future increases for your home on a sliding scale over 5 years, after 5 years the amount of your share in the positive equity is 50% which is the most you can attain. This may sound a lot but versus loosing your home it is probably a better option.
With this new Make Home Affordable plan it may be the best time to apply for a home refinance or mortgage modification loan. You can potentially save hundreds of dollars a month which you can use for other necessities. Look into the program and do some research and get back on you feet.