Government Creates a Loan Modification Program Worth 75 Billion Dollars to Help American Homeowners
The numbers of families assisted by the loan modification program created by the Federal Government is soaring.
Since the government has proposed to help out up to nine million families with the two different sections of this program and has put out an advertising campaign, the number of applicants has increased dramatically.
This program covers two main areas - refinancing and modification.
With refinancing, families can be completely up to date with their payments, but if they are experiencing difficulty and want to refinance then they can apply for this program.
For the modifications part of the program they have to be at least three months delinquent on the payments and it is also necessary to prove financial difficulty.
The modification section is where most of the attention lies despite that more families will be helped with refinancing.
The modification is for those who may not be able to keep their home any other way.
There are several million families that are on the verge of foreclosure right now and this program aims at preventing those foreclosures from happening.
The eligibility requirements for the modification part of the program include the date of the loan, the residence to which it was taken out on, the financial situation of the family in question, the amount owed on the principle, if there has been a previous bankruptcy, and if it a first or second mortgage.
The last two items there have to be an emphatic 'no' because the government does not accept applicants who have filed for bankruptcy or who have taken out a second mortgage.
When families are approved, their mortgage payments will not exceed 31% of their gross monthly income and their interest rate will be decreased by 2%.
They will also receive a deduction in their principle amount by $1000 every year which is paid for by the government.
In using this program they can save thousands of dollars within the first few years.
As long as they keep on residing in this home they can receive these benefits for at least five years so therefore the minimum that they will save is $5000.
This of course does not include the extra cash not spend on interest.
Anyone interested in this program can find more information at www.
treas.
gov in the press release section.
There are a number of valuable documents there to read.
Since the government has proposed to help out up to nine million families with the two different sections of this program and has put out an advertising campaign, the number of applicants has increased dramatically.
This program covers two main areas - refinancing and modification.
With refinancing, families can be completely up to date with their payments, but if they are experiencing difficulty and want to refinance then they can apply for this program.
For the modifications part of the program they have to be at least three months delinquent on the payments and it is also necessary to prove financial difficulty.
The modification section is where most of the attention lies despite that more families will be helped with refinancing.
The modification is for those who may not be able to keep their home any other way.
There are several million families that are on the verge of foreclosure right now and this program aims at preventing those foreclosures from happening.
The eligibility requirements for the modification part of the program include the date of the loan, the residence to which it was taken out on, the financial situation of the family in question, the amount owed on the principle, if there has been a previous bankruptcy, and if it a first or second mortgage.
The last two items there have to be an emphatic 'no' because the government does not accept applicants who have filed for bankruptcy or who have taken out a second mortgage.
When families are approved, their mortgage payments will not exceed 31% of their gross monthly income and their interest rate will be decreased by 2%.
They will also receive a deduction in their principle amount by $1000 every year which is paid for by the government.
In using this program they can save thousands of dollars within the first few years.
As long as they keep on residing in this home they can receive these benefits for at least five years so therefore the minimum that they will save is $5000.
This of course does not include the extra cash not spend on interest.
Anyone interested in this program can find more information at www.
treas.
gov in the press release section.
There are a number of valuable documents there to read.
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