LOAN MODIFICATION:Who Is It Good For? Part III

The fact that a homeowner has not missed a mortgage payment, is not cause for disqualification from Loan Modification. This is so even if the homeowner has little or no equity in the property - they can refinance into a new mortgage with better terms and a lower rate.

Barack Obama's foreclosure prevention plan according to Housing Secretary, Shaun Donovan, "...will help make home ownership more affordable for 9 million American families, and in doing
so, help to stop the damaging impact that declining home prices have on all Americans."

Even though the focus of the program is on those who are behind on their mortgage payments, and those at risk of defaulting, homeowners who have no delinquencies can still qualify if they can show that:
(1) they owe more on the home than it is worth
(2) they have a high mortgage debt compared to their income
(3) they have an increase in expenses, and
(4) they have a decline in income

The Homeowners Stability and Affordability Plan seeks, among other things, to obtain minimal and sustainable mortgage payments for the homeowner. It has set a 31% ratio of gross income to expenses. This is seen as an ideal goal and falls within standard Fannie Mae and Freddie Mac guidelines. The ratio includes taxes, insurance and any applicable Homeowner Association dues.
The thinking is that this should contribute to easing the spiraling momentum of the nation's foreclosure crisis.

Among other requirements that are expected of the homeowner when applying for relief under the plan is:
(1) full disclosure of income
(2) execution of a statement of financial hardship
(3) the primary mortgage must be below $729,000
(4) the homeowner must have obtained the mortgage prior to
January 1, 2009 and
(5) the home must be their primary residence

According to all indications, Washington officialdom is promoting this loan modification plan whenever and wherever. Banks and Loan Servicers are being encourage to participate in the program through various incentives the Federal Government has incorporated in the plan. All homeowners across the nation need to do now, is to call or go into their Bank or Loan Servicer to start their process. Its good for you ... see if you qualify.... visit or make the call...............NOW!!!!