September 17th, 2010 by bilywordon
The federal loan modification program was created in order to help homeowners who are having a difficult time keeping up with their mortgage payments. These are people who were stuck with high interest loans and unable to get a better loan modification agreement through their present lender. Millions of Americans require a home loan modification to their mortgage in order to keep their homes away from foreclosure. The following is information on the loan modification program and explains the loan modification agreement process.
In short, the loan modification program has been structured to help homeowners get themselves lower mortgage payments that are both affordable and sustainable through the loan modification agreement. This means that with a home loan modification they cannot go over 38% of the gross monthly income of the household. This amount is intended to include insurance, taxes and applicable association dues from the loan modification program.
As an incentive for home affordable modification program lenders and services to join into the program the Treasury department is providing financial rewards for each home loan modification. Additionally, any lost revenue as a result of the lower interest rates will be covered by the government. Lastly, the homeowners who qualify with a loan modification program will be allowed bonuses. This means that they can be paid $1000 a year for up to 5 years to be credited to the loan principle to help them re-establish some equity in their home.
The loan modification lenders in question will also be required to go over each individual request from interested homeowners to make certain that they are eligible for the federal loan modification program. Every potential applicant will have to provide the proper documentation since they will be qualified for the loan modification agreement on an individual case by case basis.
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This entry was posted on Friday, September 17th, 2010 at 2:16 am and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.