President Obama has introduced this new loan modification program in an effort to help many homeowners struggling with their mortgage payments. There are some guidelines that must be met in order for a homeowner to qualify for this.
1. Financial hardship must be present. The loss of a job or death of a spouse or a recent divorce would fit this requirement.
2.Monthly housing expenses exceed 31% of the monthly gross income. The term of the loan may be extended to get the monthly payment below the 31% threshhold. If necessary, the interest rate can be reduced as well to accomplish this goal. If after these two steps are taken the payment remains above the 31% level, the government can subsidize a portion of the debt.
3 The mortgage should be on the primary residence of the individual seeking the modification.
If a person meets the above requirements, I would recommend that they contact their lender and speak with a representative in the loan modification department. More lenders are building up staff in this department in order to deal with the increase in applications for this. Why not take advantage of this chance to get back on track. Remember that Obama as well as the lenders now realize that working out as many loan modifications as possible is an important step towards assuring a housing recovery.
Call The Law Office of William J. Reinhardt, Jr. at 718-377-8880 if you need additional assistance. You may e-mail your question as well to [email protected]
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