Obama Modification Mortgage
Obama Modification Mortgage: What is Financial Hardship?
Are you like millions of Americans struggling with late mortgage payments or the threat of foreclosure? President Obama’s Home Stimulus Plan may have a program that will save your home and stop that foreclosure. Let’s take a look at how you can qualify for a loan modification. The Home Mortgage Modification program will lower your mortgage payment, decrease your interest rate, and make it possible for you to remain in your home. You can stop that foreclosure fast by meeting the following criteria.
Financial Hardship is a documentable financial situation. It does not mean that you just have a tight budget. It isn’t caused because you bought a new car you couldn’t afford or an engagement ring for your girlfriend and the payments are cutting into your expendable income. Financial Hardship is a situation where circumstances you couldn’t control have brought a decrease in income or an increase in expenses that has made it almost impossible to make your current house payment.
If you meet the above criteria, you may qualify for a home loan modification. You must act fast, especially if you are currently facing foreclosure. Below you will find a list of steps to get things moving quickly towards your own mortgage loan modification. Talk to your lender about qualifying for Obama’s home loan modification program. Research the guidelines for approval before giving your financial information to your lender. When preparing your financial statement and application forms, be sure you have filled them out completely and correctly. Once submitted to your lender, you will not be able to change any of the information on your financials.
Create a checklist that ensures that you have every document needed prior to contacting your lender.
After you have everything prepared accurately, you are now ready to contact your lender and have the best possible chance of getting approved for a home loan modification. There are very consistent guidelines set forth for lenders regarding any of Obama’s home stimulus loan modification programs. There are even payments from the Treasury as incentive to the lenders. The guidelines require lenders to base your monthly loan payment on your current financial situation. Lenders also must contact homeowners that are not currently behind but who are potentially at risk of falling behind. The government has asked lenders to stop foreclosure sales while reviewing current applications, although this is not mandated.
Their house payment was budgeted with the consideration of their regular paying job .
This would definitely be financial hardship
More people are looking to the conveyancing market for mortgage options as their fixed term mortgages come to an end. Solicitors are finding the market to be lucrative, despite the current economic climate, as a wave of home-owners see their fixed term mortgages come to an end and look to remortgage their homes to release cash. As credit card and loan interest rates rise and unemployment becomes a real risk for a lot of consumers, many are looking to pay off as much debt as quickly as possible by releasing equity from their homes. The Bank of England base interest drops in the last few weeks have seen those with fixed mortgages receive the short end of the stick. While homeowners with tracker mortgages saw interest rates plummet to below 1%, consumers with fixed rate mortgages were still trapped under interest rates of around 6%.Fixed mortgages work by offering consumers a fixed interest rate. This means they will be making the same monthly payments throughout the fixed term, regardless of whether the lender.