Personal Finance guide

Are you going to lose your home to foreclosure? Need a lower monthly mortgage payment? Afraid you won’t qualify for a mortgage refinance? Then you need to know that refinancing a mortgage is possible thanks to President Obamas “Making Home Affordable” plan. This plan allows all types of homeowners the chance to refinance into a better, more affordable mortgage, and avoid losing their home. Here us some information you should know:

Right now, millions of homeowners are going to lose their home to foreclosure or home loan default. In an effort to prevent this number from rising, President Obama has announced a $75 billion stimulus plan to help homeowners. This program is a $75 billion effort to allow all types of homeowners a chance to refinance their mortgage into a better, more affordable, monthly payment. The thought behind this plan is that if a homeowner is able to make their payments every month, they will, regardless of housing market conditions or other things. That is why a major benefit of this program is that all people who get help from it will have a monthly home loan payment that is no more than 31% of their gross monthly income. This rate includes taxes, insurance, and other costs of owning a home. This will be a major reduction in payments for many people, and will stop a lot of foreclosures.

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President Obamas mortgage stimulus program will help millions of homeowners. The help comes from new mortgage refinancing options which are aimed at helping struggling homeowners get a better, more affordable monthly mortgage and avoid or stop foreclosure. Millions of homeowners are now able to get lower monthly mortgage payments, and save money,their home, or both with Obamas stimulus.

This stimulus plan is due to the horrible economy, bad housing market, and record high number or foreclosures and mortgage defaults. Millions of homeowners are struggling which is leading to a domino effect and now the mortgage lenders and banks are starting to feel the pinch as well. Now though, over $75 billion in money is set to be used by Obamas plan to help homeowners.

New mortgage refinancing options now exist for all types of homeowners in all types of financial situations. Whether you have bad credit, an upside down mortgage, no money, no job, or have been denied before, help is now available. That is because cash incentives from the $75 billion is going to be given to mortgage lenders and banks every time they help a homeowner avoid foreclosure, or get a mortgage refinancing according to Obamas plan. This money means that getting approved for refinancing, even with bad financial problems or if you are facing a foreclosure, is now possible and easier than ever.

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Homeowners can now get a mortgage refinancing into a 2% interest rate, save money, and save their home with President Obamas stimulus plan. This program is designed to help all sorts of homeowners find financial relief, save money, and avoid losing their home to foreclosure or mortgage default. It has never been easier or more beneficial to refinance a mortgage than it is now. Here is some information for homeowners who want to use this stimulus program for themselves.

This program is designed to lower homeowners monthly mortgage payments to an affordable level. The Obama administration has determined that homeowners using this plan should not have to pay more than 31% of their monthly income towards their monthly mortgage payment. This amount also includes taxes, insurance, and any homeowner fees. This will be a major reduction for many people, and possibly help them save their home from being lost, save them money, or both.

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Have you missed a mortgage payment? Are you more than 60 days late in making your monthly mortgage payment? If the answer to any on of these questions is a ‘yes’, a foreclosure is a real possibility and the only option to save your home is home loan modification. Not only is a mortgage modification simpler and cheaper than refinancing but also you can opt for it without worrying about your poor credit rating.

When you ask your bank for a home loan modification you are essentially telling them that you cannot meet your monthly mortgage payments. This may be due to a range of reasons that have caused a decrease in your income like divorce, death of an earning member, work related injury, chronic illness, unemployment etc. However, you are letting the bank know that you are confident that you will be able to make the payments if the amount is brought down to a more affordable figure.

You can also tell the bank about the option that is most suitable for you; there are two ways to reduce the monthly mortgage payment:

• To reduce the interest rate

• To increase the loan term.

There are two ways to initiate the home loan modification process you could either approach your bank on your own or you could avail the services of an attorney or a company that can negotiate the terms of the mortgage modification on your behalf.

Continue reading ‘How Loan Modification Can Stop A Foreclosure’ »

If you have missed a mortgage payment or if you are more than 60 days past due, you may be heading for troublesome waters and even a possible foreclosure. The delay in making the payment will reflect badly on your credit score rendering you ineligible for refinancing. In such a situation home loan modification may be the only way to save your house.

Today most lending institutions are not keen on foreclosure simply because they have to spend on the foreclosure proceedings and there are no buyers in the market. So essentially even after foreclosing the house they cannot recover their dues. On the other hand a mortgage modification is a ‘win-win’ solution for both the lender and the borrower. The lending institution can be reasonably sure that they will be able to recover most of their principle amount after granting the home loan modification and the borrower can be sure that the monthly mortgage payment will be more affordable.

When you request your bank to grant you a mortgage modification you are essentially stating that you are in financial trouble and so you will not be able to meet the monthly mortgage payments unless the amount is brought down to a more affordable level.

You will have to submit a home loan modification hardship letter along with other documents that will help the bank to confirm the veracity of your claims. If the bank feels that yours is a genuine case they may grant you a mortgage modification. There are two ways in which you could reduce the monthly payment either by bringing down the interest rate or by increasing the tenure of the loan. In certain cases the bank may also agree to write off a certain amount from the principle.

Continue reading ‘Are You Falling Behind On Your Mortgage – Loan Modification Can Help’ »

A good home loan modification letter should include three crucial elements. These three crucial points will help you to arrange your mortgage modification hardship letter in such a way that it will include all the necessary information and get you the desired results. So when you are drafting a home loan modification hardship letter include the following:

Financial adversity: The first thing that you need to mention in your mortgage modification hardship letter is the financial hardship that you are experiencing and the status of your current financial situation, this should include information about your earning and expenses. Also include the reason for the reduction in income. It is important to make your home loan modification hardship letter as pertinent as possible. You can include factors like work related injury leading to medical expenditure, job loss and interest rate reset among others.

The Time: It is also important to tell the bank about the time when the financial hardship began in your mortgage modification hardship letter. It would be good to verify facts with relevant documents. Your home loan modification hardship letter should include a brief, clear and chronological list of the difficulties and ensuing problems. Include information about late payments or defaults here.

Talk about what you want: The next step is to itemize the plans that you feel will help you to be more regular with your payments. In order to grant a mortgage modification, the bank needs to know that you are a responsible person who will definitely make the payment once the home loan modification has been granted. Tell the bank how reducing the interest rate will help you to meet your monthly payments. If possible also include your new budget plans that you intend to incorporate once the mortgage modification has been approved.

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