Home Loan Modification

Obama’s Loan Modification Plan was put in place to help homeowners refinance or modify their loans for more affordable mortgage payments.

The sad fact is great part of the money go to the banks & they’re not mandated to heed. Only homeowners who aren’t behind on their mortgage account & whose loans are with Fannie Mae & Freddie Mac are eligible for the Plan. The plan is leaving millions of U.S. homeowners in danger of facing foreclosure defenseless & out of the plan.

Here are a few general routine precepts for basic eligibility for this program:

1. The home must be your primary residence

2. Cannot be used for second mortgages

3. Provide proof of your income

4. Your current mortgage must match 31% or more of your gross monthly income

As many as 6 million families are predicted to face foreclosure in the next couple of years.

The scathing & fast paced recession in the economy & in the housing market has produced adverse consequences for homeowners throughout the America . Millions of reliable families who pay their monthly mortgage payments punctually have had the value of their property fall & consequently are now incapable to refinance to lower mortgage rates. Meanwhile millions of working people in the US are having difficulty staying current on their mortgage payments after being laid off or downsized. In the last 14 months alone more than five million jobs have been eliminated & millions of hard working families are now concentrating more than 40 or 50 percent of their income towards their monthly mortgage payment.

How To Modify A Loan
When a loan modification application is rendered by a homeowner it meticulously scrutinized to conclude the profitability to the investor or the chance of loss. The “Net Present Value Test” is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. Their decision is not based on what’s best for the homeowner. It is entirely based on what is more financially rewarding to the investor. If modification is not in the favor of the investor they will deny your application.

As such homeowners are able to get legal assistance.

Want to find out more about Home Loan Modification then visit Janian & Associates’s site on how to best prevent foreclosure.

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