The federal government has set aside $75 billion for a loan modification program just to help citizens who are facing the possibility of losing their homes.
Millions of homeowners will now pay less each month and get to keep their homes. Qualification is necessary and not everyone is eligible but the requirements are clear.
Here are the conditions to access this program:
* Only the mortgage on the house the homeowner lives in will be considered
* Only homeowners holding one mortgage can apply, second mortgages do not qualify
* The homeowner must prove they are experiencing or expect to experience financial hardship
* Late payments are not a requirement
* The homeowner must give proof of his/her income and meet specific guideline in this area
* The completed application and all the required paperwork must be submitted to the bank that gave the mortgage
The benefits are numerous as well:
* Payments that are just 31% of the homeowners gross monthly income
* Interest rates as low as 2%
* An extension of the mortgage to up to 40 years
* A reduction in principal with the cost shared by the bank and the government
While no bank or lending institution must participate in this program, it is expected that they will. The government is making it worthwhile by offering financial incentives of $1,500 to mortgage institutions and $500 to servicing agencies. There is also a bonus for homeowners, if they keep their payments up to date for five years, they get up to $5,000.
It is expected that this program will generate a lot of interest so right now is the right time for all interested homeowners to start filling out forms and gathering their paperwork. Do not waste time, read everything and ask questions. To qualify and be approved you will need to learn how to correctly and completely fill in all the forms and have all your documentation gathered to prove your case. This will help your case get all the attention needed to be quickly processed so you can have an answer faster.
About the Author:
For tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/
Author: Joe Emery