Loan Modification: Making Home Affordable Program
The Making Home Affordable program was developed by Obama to help millions of Americans refinance or modify their home loan. The program won't help you if you have no income due to job loss, but it can help those who have seen a decrease in income. Matter of fact, the bail-out was designed specifically for those who have an income but can no longer afford the mortgage payments.
The loan modification program can decrease your mortgage to 31% of your current income. The stimulus package encourages the banks to renegotiate your loan terms. The program matches dollar for dollar the decrease in mortgage payments for qualified applicants. To qualify, the loan must be for your primary residence. Second homes and investment properties do not qualify for the stimulus package.
While the program does not significantly reduce the principal amount, it can lower monthly payments. Some homeowners find themselves paying as much as 50% of their income towards mortgage payments, with the home affordable program this can change. Homeowners that have subprime loans, interest only, or balloon mortgages can see great benefits with the loan modification.
Anyone applying for loan modification will need to apply for financial hardship. This letter will need to explain why the homeowner is having difficulty paying the mortgage on time. Losses of income or rate adjustment are just a few reasons acceptable for loan modification.
Qualifying for a Making Home Affordable program does not require professional help, although it is recommended. Home Affordable program specialists can help homeowners filter through the paperwork and deal with the bank.
Whether you seek professional help or not, it is important to remember the bank personnel are not there to help you. They are there to get as much money as possible for the bank. Bank personnel can be deceptively friendly and helpful. However, they work for the bank and not you. Having someone on your side will help you get the best mortgage possible.
For more information log onto :
http://www.homeaffordablemodificationprograms.com/
About the Author:
I am the owner of this site