Aggressive programs have been developed in order to aid struggling homeowners in the face of the foreclosure crisis. It comes as a ray of hope for many owners of homes who have been unable to keep their jobs. Such people are not aware that they can stop foreclosure quickly. Fortunately, the United States government has come up with a program that is designed to help such people. Allow me,here, to guide you on how to get mortgage modification. If you wish to know how to get mortgage modification and stop foreclosure quickly, you have to prove your case.
You will need documents to prove your qualifications which include a list of your monthly expenses, records of online payment as well as statements as proof of these amounts. You need to have tax returns documents for the past two or three years. If you are currently unemployed, you must possess an unemployment award notification letter that lists what your benefits are, when you will start getting them and when they will end. You should have bank statements of the last 12 months. Lenders require pages of the front as well as back, so see to it that you copy both the sides.
Other documents related to finance that would be required would be 401K statements, statements of mutual funds, spousal and child support and so on. How to Increase Your Chances of Getting Approved. If you are employed in a company for more than two years, lenders feel sure that you will get a new job easily. The lender will not think twice before providing you a loan. If you are unemployed but are able to produce a good credit history, lenders will be more than willing to deal with you as well.
They will give you the option of mortgage modification as they feel that you can win the mortgage. If you are able to prove that you will be employed within a few weeks or months you have a much better chance of getting a loan modification.Mortgage loan modification has quickly become the best option for homeowners who are unable to pay their mortgage and are on the verge of foreclosure to keep their homes. Another reason that mortgage loan modification has become the best option is the fact that getting the modification is relatively easy.
If completely qualified, a homeowner can do it on their own with a simple application and hardship letter. Approval is not guaranteed for a homeowner doing it on their own. Many homeowners opt to apply with the help of a mortgage loan modification company or professional to boost their chances. Applying is easy when done alone, true – but a lender is far more likely to approve an application that is borderline qualified if backed by a company. These companies give assistance in filling out the application and writing the hardship letter that is to be sent in along with it.
After the application has been submitted, they then begin negotiations with the lender, if necessary. Some applications are a given, while others require a little more convincing. Many homeowners are turned off by the prospect of paying someone to do something they can do on their own, and some don’t need help from a specialist, but most homeowners do need assistance when requesting a mortgage loan modification from their lender. The fee for assistance can range anywhere from $50 dollars to $3,000 dollars, depending on the experience of the representatives within the company.
Most also charge a percentage of the total loan amount if the modification is successful, usually between 1% – 2% . No matter whether a homeowner decides to go at it alone or with help, the time it takes to get all of the paperwork pushed through and approved can take six to eight weeks. Sometimes it is shorter when a professional handles the modification, but that also depends on the experience of the representative.The U.S economy has been undergoing sev
eral ups and downs. The recession along with the other fluctuations have left the home owners stressed and tensed.
The stimulus package 2009 announced by the president have somehow added some relief to the lives of these house owners. This plan provides affordability to the owners by providing several options to save their homes. The Federal government also offers various home mortgage grants. There are grants that help you get the down payment to buy your own homes. This money needs not be repaid. There are various grants that are offered to the first time home buyer. For that you must be above 18 years of age, the house must be located in U.S.
In addition to these, it must be your principle residence and you must have got it in inheritance or as some gift. Apart from new home these home mortgage grants are also available for refinance and modification. You may apply for the free money that helps you pay your debts or any missed payments too. There are certain eligibility conditions set by the Federal Government in order to avail the house mortgage grants. These grants are given after the complete satisfaction that you really need the money. You must check them before applying for any of them.
You may qualify for a mortgage loan modification using Obama’s federal plan. Lenders are accepting applications for this aggressive loan workout program, but before you contact your lender, make sure you understand how to improve your chances of qualifying.
$75 billion dollars has been allocated to fund this program called HAMP-Home Affordable Modification Plan. Approximately 5 million homeowners are expected to apply. Here is some important information that may help you qualify to lower your monthly payment. Loan amount must be less than $729,750 (higher allowed for 2-4 units) Your current payment must equal more than 31% of your gross monthly income (including taxes, insurance and homeowners dues) If you can meet these criteria, then you may be a good candidate for the Obama federal mortgage loan modification program.
The program is voluntary, however most lenders are participating. As an incentive, lenders will be paid for each modification completed under this program. In addition, homeowners who successfully pay their new payments on time will be eligible for bonus payments of $1000 per year, for up to five years. Those bonus payments will be deducted directly from the loans principal balance to help recapture equity. First, the interest rate will be reduced to as low as 2%, then. The Obama federal plan has been expanded to include second liens as well.
If you have lost a great deal of equity, you may see your second loan modified to an interest rate of 1%, or another option under the program allows for the entire debt to be forgiven. The lender will be paid a subsidy to forgive some second liens that meet certain qualifications. If you have a second loan, be sure to ask your bank about this option. Obama’s loan modification plan requires that you complete a financial statement detailing your income and expenses each month. Lenders use a standard 4 step formula to determine if you will qualify under the plan.