Obama Mortgage – 5 Yrs Post Loan Modification
One needs to pass through a difficult screening procedure to qualify for obama loan modification program.Some of the conditions for qualifying for this loan modification program are as follows.
•The origin of the first loan should not be after January 1, 2009
•The property for which mortgage loan modification program is being applied for should neither be for commercial purpose nor for investment. It should be a primary residence
•The house should neither be vacant not condemned
•The balance that has to be repaid should not exceed $729,750
•The first loan should be supported by either Freddie Mac or Fannie Mae
•The submissions include 2 latest salary stubs, latest tax returns, along with an affidavit mentioning that the applicant is undergoing financial hardship.
Once one has qualified for the loan Modification Program it does not mean that the debt is struck off. On the contrary, this just modifies the terms and conditions of the new loan to fit the purse of the debtor.
After qualifying for the program there is trial period of 90 days, the duration within which the debtor has to be regular at the monthly payments. After successful trial period the debtor can be eligible for another longer duration of Mortgage Loan Modification program.
One needs to be very regular at payments for the rest of the term too. The second term is going to be very long depending upon the terms and conditions mentioned in the modified loan. Some of the reasons for being regular and careful for the second term are as follows.
•After every five years the terms and conditions of the mortgage can be changed. This depends on the features of the loan modification that the debtor availed.
•The 6th year of loan modification can have a hike in the rate of interest.
•If the debtor has been regular at paying the monthly payment, the debtor can get a reduction of $1,000 every year in the principal amount. This program can lower mortgage payments.
•If the debtor fixed the rate of interest for Obama’s Loan Modification Program at the current market rate or more, the rate of interest is fixed till the mortgage lasts.
The debtor must thoroughly read, study and analyze the terms and conditions mentioned for the Obama’s Loan Modification Program. This program can Save Home from Foreclosure.
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