Obama's Mortgage Modification Plan [mortgageloan-processor.blogspot.com]
President Barack Obama says a billion settlement between mortgage lenders and states over foreclosure abuses "will begin to turn the page on an era of recklessness that has left so much damage in its wake." (Feb. 9)
mortgageloan-processor.blogspot.com Obama: Mortgage Deal Turns Page on Reckless Era
The main intention behind Obama's mortgage modification plan is to improve the financial condition of the people of America, which in turn will help improve the economic status of the country as a whole. There are actually few things related to the modification plan that people should know so that it helps them understand the plan and get answered to the related questions. This is very important because there are many people who still have some misconceptions about the home stimulus plan and its benefits and safety measures.
The first thing that should be clear in the homeowners' mind is that they are not going to loose their house just because there is a steep downfall of the value of houses in the property market. The foreclosure has nothing to do with the current value of your house. Only if you fail to repay your home mortgage installments regularly, you may get a notice of foreclosure or an offer for loan modification from your lender.
There is no need to immediately accept or reject your lender's proposal, rather take some time from him. Try to discuss with a legal advisor and see if the proposal is best, affordable and profitable for you. If yes, go ahead and accept it and if not try other options to save your house.Mortgage modification plan offers cash incentives for lenders and borrowers making the plan all the more practicable and feasible. If your loan installments are more than 38% of your monthly income, the outstanding loan amount is less than $ 729,750, you are living in that house and you are facing serious financial hardship, you are eligible for the mortgage modification program designed under the main plan. There are many programs that are included in this home stimulus plan and you will have to look for the one that is suitable for you and your financial condition.
If you want to know the probability of the loan modification application approval for a particular home loan, you can get the net present value test done.
The lender will evaluate and calculate whether the modified and restructured loan will give them more monetary flow or not. If yes, they will accept and approve the application for home loan modification. So there are few points that will give you an idea whether your application will be improved or not. Recommend Obama's Mortgage Modification Plan Issues
