Lower Your Mortgage With The "Making Home Affordable" Plan
Since the economic downturn, many Americans have lost substantial income and face losing their homes. President Obama and the Congress are tying to help these people with the Making Home Affordable Plan. If you are having difficulty making the monthly payments or owe more than your house is worth, then this program may help.
Homeowners who owe a substantial amount of debt due to credit cards, known as "back end" debt, face some restrictions. If a homeowner has "back end" debt, then they are required to participate in HUD approved credit counseling. Under the plan, borrowers with debt exceeding 55% or more of their income may qualify.
The affordable home plan targets people with 20% or less equity in their homes. The idea is to help people who have lost income or people who have had their mortgage payment significantly increase. Generally, qualified applicants are those whose mortgage payment is more than 31% of their gross monthly income.
While the plan is intended to help struggling homeowners, it can actually hurt you if not done properly. In 2008, a whopping 30% of people refinancing their home actually increased their monthly payments. Less than 30% of the programs decreased the monthly payments more than 10%. Therefore, it is vitally important to seek professional advice before applying for a new loan.
Applying for a Home Affordable plan requires time and paperwork. The bank will require a massive amount of paperwork, along with additional documents not expressly required. A professional not directly working for the bank can help you sort through the required and non required documents. They can also help you determine what additional documents to provide to help with the process.
The Making Home Affordable Plan is there to help the homeowner. You can take advantage of the stimulus package by seeking professional help to start the process. It is a one time offer, so make sure you file the paperwork right the first time.
For more information log onto :
http://www.homeaffordablemodificationprograms.com/
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