For the last couple of years the economy has suffer some severe up and downs.
But since the new administration of President Barack Obama has introduced their Stimulus Package.
Many Home owners are somewhat relieved. The basis of this package is affordability and loan modification. This program is specially developed to try to stop bankruptcies and foreclosure, because it’s Neither beneficial for the homeowner or the bank. But still the process can be time consuming and very expensive
The Obama administration has put in some incentives for the mortgages companies and banks
Regarding mortgage loan modification. They will receive an amount of money,$1ooo for every client old or new they help to modify their mortgage.
The monthly payments the homeowners must pay now, is reduced to 31% of the gross monthly income, and further, the total of the complete mortgage and credit payments has to be restricted to 55% of the pretax income of the borrower.
Make sure you pay your monthly payments but yet if you do miss them due to any serious or unforeseen reason, get in contact with the bank as soon as possible with the hardship letter. Try to explain your reason for not paying the monthly payments in the best manner. The reason should be valid, justified and legal.
· Have adequate proofs with you to prove your reasons as well as your present financial condition.
· If your mortgage plan is owned or insured by Fannie Mae and Freddie Mac, you can look forward to refinance or loan modification.
· You may go for professional help regarding modification from the counselors. These counselors present your case in a more professional way. They do not even charge you unlike the private organizations.
