How to Correctly Process a Federal Loan Modification
The U.S economy is not getting any better. Many find themselves being laid off from work and some has to accept pay cuts thinking that it is way better than to be fired. Added to that, the current crisis in the housing industry has left so many homeless and others still must live on credit cards in order to keep afloat. With this on hand, the government has been making tremendous steps to finance mortgages of qualified individuals thus, the creation of the federal loan modification program.
The Obama administration has announced the implementation of the federal Home Loan Modification program which is supposed to give mortgage subsidies to low income families in America. This is also an attempt of the administration to strengthen the housing market once more thus, stabilizing the whole U.S. economy. However, not all American homeowners can avail of the federal loan modification. To know if you are eligible for the said program, let us learn more and understand the Obama's home rescue plan first.
The program aims to help homeowners modify their loan terms by providing financial assistance and giving incentives to lender and borrowers for each successful loan modification. Hopefully, borrowers can now afford their monthly mortgage once it is modified according to their financial abilities.
To qualify, you need to meet certain requirements as stated in the program. The primary conditions for you to qualify are the following:
The house must be your primary residence.
The loan must be insured by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (Fannie Mae or Freddie Mac). These are the two largest home funding firms in the United States.
The property must be one to four residential housing units.
To process a federal loan modification, you need to contact any HUD approved counselor first to ascertain your eligibility. You may also log on to the official website of the Housing and Urban Development for more information regarding the program and your qualifications. Keep in mind that you need to be careful even in applying for this government program, there are bogus loan modification firms/individuals who falsely represent themselves as government or HUD agents. Do not trust anyone, it is highly suggested that you contact your lenders immediately and seek help in person to any HUD branches near you to avoid fraudulent activities in the loan modification industry.
The Obama administration has announced the implementation of the federal Home Loan Modification program which is supposed to give mortgage subsidies to low income families in America. This is also an attempt of the administration to strengthen the housing market once more thus, stabilizing the whole U.S. economy. However, not all American homeowners can avail of the federal loan modification. To know if you are eligible for the said program, let us learn more and understand the Obama's home rescue plan first.
The program aims to help homeowners modify their loan terms by providing financial assistance and giving incentives to lender and borrowers for each successful loan modification. Hopefully, borrowers can now afford their monthly mortgage once it is modified according to their financial abilities.
To qualify, you need to meet certain requirements as stated in the program. The primary conditions for you to qualify are the following:
The house must be your primary residence.
The loan must be insured by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (Fannie Mae or Freddie Mac). These are the two largest home funding firms in the United States.
The property must be one to four residential housing units.
To process a federal loan modification, you need to contact any HUD approved counselor first to ascertain your eligibility. You may also log on to the official website of the Housing and Urban Development for more information regarding the program and your qualifications. Keep in mind that you need to be careful even in applying for this government program, there are bogus loan modification firms/individuals who falsely represent themselves as government or HUD agents. Do not trust anyone, it is highly suggested that you contact your lenders immediately and seek help in person to any HUD branches near you to avoid fraudulent activities in the loan modification industry.
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