Federal Loan modification
When
Obama was elected as the US President he promised change. And one of
the ways in which change has already occurred is with the Making Home
Affordable (MHA) plan that has given home owners a second chance when it
comes to their loan repayment plans.
Before the Making Home Affordable plan, if you were behind on your loan repayments and in desperate need of a re-evaluation on your home mortgage, loan modification help usually came in the form of foreclosure. This was not helping anyone.
However, with this plan, it is possible to gain loan modification advice as well as a loan modification agreement plan that will better suit your budget and your financial needs.
These recent developments have been developed to help home owners in light of the financial crisis. Losing your home is one of the most devastating things that can happen. With loan modification help; however, there is light at the end of the dark tunnel.
The Making Home Affordable plan was developed in February 2009, one month after Obama moved into the White House. It will last until 2012 and works with any qualifying homeowners. To get loan modification help under this new plan, you will not necessarily need to live in the house where the loan is. You can modify your loan even if you have a second home or investment property and the loan must be dated before January 2009. Furthermore, it must have less than $729,750 in principal still on it.
When it comes to being approved for a loan modification agreement, you will need to have your gross monthly income assessed as well as your current budget and future goals. For those who qualify, the loan monthly payments can be modified to equal or less than 31% of the gross monthly income for the next five years. This can be a huge help for those who need to use the remaining 69% elsewhere.
Some of the reasons people are choosing to have their loans modified include a job loss or cut hours, an addition to the family, unexpected medical and other bills and unmanaged loans. If you are considering getting a loan modification, for whatever the reason, it’s a good idea to start preparing a spreadsheet of your budget before you set up a meeting with your lending institution or. Another good idea is to look for a loan modification company who can advise you on the best proposal and how to get your foot in the door.