Refinancing, Loan Modifications, Or Short Sales - Obama’s Three Options to Avoid Foreclosure
Posted by: real estate / Category: ForeclosuresHomeowners seeking relief from overwhelming mortgage payments may be able to get help from President Obama’s stimulus package. There may be three options to avoid foreclosure available to you that you hadn’t thought of: Refinancing, loan modification, or short sale.
If your home mortgage has become almost impossible to afford each month, or if you have already begun to fall behind in payments, you may be able to get assistance under President Obama’s stimulus package. You may be able to avoid foreclosure by one of three options.
There are 75 billion dollars worth of funds available to help struggling homeowners and stop the nationwide home foreclosure crisis. If you qualify, here are the three options that are available: straight refinancing, loan modification, and if those are not feasible, short sale.
The first option is for homeowners who are not yet falling behind in their payments. This plan allows for refinancing at current low interest rates. This plan is only available to those who owe less than 105% of the home’s current market value. Also, if you have a second mortgage, that lender also must sign on to the transaction.
The second option available is a loan modification plan that offers homeowners who qualify a reduction in interest rates, extended loan terms and some deferral on principal! The idea is to achieve a monthly mortgage payment that is below 31% of gross income each month. Second mortgages now qualify for loan modification with 1 or 2% interest rates and sometimes complete loan forgiveness. This is a once in a lifetime opportunity and you can only apply once! There is only a window of time when this will be available. If you don’t qualify for the straight refinancing because you owe too much or have fallen behind already in monthly payments, loan modification may be the perfect solution to your financial problems.
The Department of Treasury is encouraging lenders to complete these loan modifications by financially rewarding them for completed modifications. Borrowers are also to be rewarded financially for maintaining these new payments up to date for the next six years. Be sure and become knowledgeable about the requirements and options before applying. You want to be sure and do it right the first time, since there are no second chances.
The third option, if refinancing and loan modification is not an option for you, is short sale or deed in lieu of foreclosure. The property is sold at a price that could be less than the amount owed. The government is paying each lender $1,000.00 for allowing a short sale, and if it is unsuccessful, the homeowner can turn over the home without foreclosure and also receive financial relocation help.
Refinancing, Loan Modification, and Short Sale are three options available to most homeowners through the stimulus package. Since incentives are given to lenders, they are often more receptive than not to a loan modification request. The government is encouraging your lender to work with you to avoid borrowers working with loan modification companies who charge exorbitant fees to help you. Check out all your options, and see what your lender can do to relieve your financial burden. Do your homework before you contact them, but be aware that not everyone will qualify. Start now and get your financial future turned around while the opportunities are available.
For more information about home mortgage modification, check out: http://1HomeMortgageModification.com/
Wesley_A._Kennedy
Last 5 posts in Foreclosures
- Want to Sell Your House This WEEK? Real Options You May Not Know About! - June 23rd, 2009
- Obama's Federal Plan - Mortgage Loan Modification - June 23rd, 2009
- What You Need to Know Before You Buy a Short Sale - June 23rd, 2009
- How Can I Meet the Debt Ratio Approval Requirement? - June 23rd, 2009
- What Are the Qualifications For the Obama Federal Loan Modification Plan? - June 23rd, 2009
What is your Motivation for selling??/p>
A seller’s motivation is truly the main factor in determining how to go about selling their house.?If a homeowner has a few months, and cost isn’t a main concern, than a realtor is probably the correct choice for them, since they will allow the property to be seen by more potential homebuyers.?If the homeowner has more time, but less money, and… Continue reading
Each citizen of the United States may qualify to the Mortgage Loan Modification an Obama’s Federal plan. For it is a government program many lenders are available and willing to accept application, which means more chance to got an approved application but prior to that you as a homeowner should understand how to improved your chances of qualifying note that there is $75 billion allocated for this project and 5 million home owners need the loan. For you to have the best chance here are some information that can help you lower your payments.
As a standardized program the federal mortgage… Continue reading
It is a dream come true when you buy your first home. Unfortunately in a struggling economy it is not always a dream that will last forever. Foreclosures are almost unavoidable to some home owners. When this happens you may be able to bargain with the bank for a great purchase price- a deal! However, your intentions do not happen in time. A short sale is when the lender will accept less than the amount that is owed totally. But in order to be considered for a short sale, you must qualify for a short sale. Some financial institutions will… Continue reading
Most questions given by people who face foreclosure and willing to take a step to save their homes are what are within that Loan Modification Forms? How can I meet the Debt Ratio Approval Requirement?
The following are the simple ideas that can answer the question above:
Calculating your debt ratio is one of the most important parts of completing your loan modification forms. Since lenders want security with their finance they produce an approval guideline where acceptable income to debt ratio is indicated. Homeowners who meet the lenders guidelines will have the chance to avail the loan.
Most debt ratio seen on… Continue reading
Related posts
Tags: Foreclosure, mortgage, mortgages