Are you just returning after military activation to find that your mortgage payments are due due to the loss of the income from your regular, higher-paying job? Loan Modification Help may be available for you through the Home Stimulus Package passed by President Obama.
While you have been away with your activated National Guard or Reserve Unit serving your country overseas, your family may have been experiencing financial difficulty due to the decreased income while you were away from your regular career. Even though you were paid active duty pay while in the desert, your family budget may have still been significantly disadvantaged if the combination of your regular job and your part-time military pay combined total considerably more. This is considered "financial hardship" and is one of the requirements to apply for federal assistance through the Home stimulus Package.
President Obama desires to reduce the amount of foreclosures and bolster the sagging housing market. This is being done through federal financial incentives to approved banks and lenders to provide Loan Modification Help to struggling homeowners; the goal is to reduce their monthly payment so they can stay in their home! This is done through one or all of several methods at the lender's disposal: reduced interest rates, lengthened loan terms, waived late fees, and even forgiveness of some principal!
To apply, some other qualification guidelines are required:
· Your home loan must have been written on or before January 1, 2009.
· The amount of the loan can not exceed $ 729,750.
· This home must be your primary residence; that tent in the desert does not count!
· The current monthly loan payment (plus your homeowner's insurance, property taxes, and any dues you must pay to a homeowner association) must be more than 31% of your gross monthly income.
· The mortgage must be backed by Fannie Mae or Freddie Mac.
If you meet the qualifications to apply, you will need to present documented paperwork that shows your financial hardship situation in detail. You also need to present a budget work-up that shows your financial ability to pay the new modified payment. Also, you will need to convince your lender that you are committed to do just that.