President Obama’s home stimulus package has sanctioned $275 billion for the struggling homeowners who are either facing foreclosure or are on the verge of it.
The Obama Homeowner Affordability and Stability Plan, HASP, makes another effort to stem the rising tide of mortgage foreclosures by offering some incentives to servicers, lenders and borrowers. The current monthly payment, plus taxes, insurance, and homeowner dues, must be more than 31% of the homeowner’s gross monthly income.
You would receive a reduced interest rate that could fall as low as 2%. Your loan term could be extended to as long as 40 years.
Investigate The Home Stimulus Plan, and see if you might qualify.
If the taxpayer purchases another home and decides to designate another residence as the primary residence, then the tax credit must be returned.
If the current payment of your loan is more than 38% of your gross monthly income, you can get if modified on a rate in which your monthly installment does not exceed 38% of your monthly income. The figures used for the payment also include property taxes, homeowner insurance, and association dues.
It has to have been written originally on or before January 1, 2009.
- The total loan amount cannot exceed $729,750.
They will also want to document that there is financial hardship. This constitutes events beyond their control that have greatly increased their expenses or decreased their income and made paying their mortgage payment almost impossible. This could through job loss, divorce, death of a spouse, military service, or illness and medical bills. You will be required to write a letter, preferably one page, that details this situation.
This option seeks to lower your monthly payment to an affordable amount that will allow you to successfully meet your mortgage obligations.
Your lender is on the Treasury Department’s Approved Lender List.
If you have misleading information on your documents, you may not be approved for a loan modification.Research the options available to you before you approach your lender. Many borrowers contact their bank to apply for an investment property loan modification before they take the time to learn and prepare. So, it is imperative that you correctly formulate your application and attach all necessary documents to verify your finances.Millions of homeowners will qualify to get assistance.
If you are one of the millions of other homeowners who don’t qualify under the Obama guidelines and need a little assistance then help is available. A foreclosure is an expensive and time-consuming thing for a lender, and in these kind of economic times, houses may sit for months or even years vacant, bringing in no money at all. These stimulus package loan modifications are available for a limited window of time only.