Federal Loan Modification Plan Helpful To Millions Of Homeowners Across America
“The federal loan modification program announced by President Obama is slated to benefit almost 5 million American homeowners who are at risk of losing their houses and faced with financial hardships. The program is more effective than any other earlier initiatives of a similar nature undertaken by previous governments and even strikes the right chord with the American people.”
Plummeting housing values coupled with the ongoing bout of economic recession have only added more to homeowners’ problems. With property prices at historic an all-time lows, there has been an upward trend in the number of home foreclosures too. The Obama administration introduced the government mortgage loan modification program in March 2009 to support the sagging housing market and help struggling house makers save their homes as well as lessen their financial hardships. The plan typically aims at lowering the monthly mortgage payments of homeowners by modifying the terms of their existing home mortgages and compensates the mortgage lenders participating voluntarily in the program.Interestingly, a portion of the mortgage loan modification pprogram deals with refinance aspects for homeowners whose properties are at-risk of foreclosures. But to be eligible for a refinancing solution, a borrower is required to invest at least 20% of his home equity.
The entire federal scheme is slated to benefit almost 5 million American house makers. Distressed homeowners could modify mortgage loans on which they have gone upside down or those who even fear that they might go that way, could secure much lower rates of interest, sometimes even as low as 2%, on their home mortgage refinance solutions. This could go a long way in bringing down the monthly mortgage payments to 31% of their gross monthly income as per tenets of the federal plan. Lenders participating in the process are entitled to receive $1,000 for a period of 3 years, towards incentives from the federal government and so are the borrowers who maintain regularity in payment of monthly installments. The entire scheme is governed by the Federal Housing Authority or FHA. Nevertheless, borrowers who need the much desired relief are required to qualify for these FHA loan modifications.
Thus, President Obama’s loan modification plan offers plenty of solace to troubled homeowners and strikes the right chord with the people of America. Earlier efforts made by previous governments were not as much effective as missed mortgage payments were linked to principal loan amounts. The present federal loan modification plan has an altogether different design and the guidelines set would invariably make the process more efficient in comparison to past initiatives of similar nature. However, to get more information and proper guidance to qualify for a loan modification under the Home Stability Initiative backed by the federal government, it is imperative for struggling homeowners to avail professional online services of reputed service providers like www.USLoanz.com. This could inevitably help them to get the much desired assistance from home loan modification experts and be eligible as well as get an early approval for a home mortgage refinance solution which caters to their financial needs and requirements.
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