If your mortgage is behind, and you are facing foreclosure - there might be some help for you yet. As you might already know, there is a new Stimulus box available for homeowners in your situation. President Obama's plan includes many options in making your mortgage more affordable, based on your earnings and debt ratios.
Under this new plan, banks are given money from the government for every loan modification and refinance they successfully complete. Banks are therefore more willing than ever to help you, to avoid the impact of what foreclosure would do to them in such a stale economy.
To obtain a mortgage refinance or loan modification on your mortgage, you must meet all the requirements as stated below:
Mortgage Refinance: Homeowners who have lost asset value can take advantage of new refinancing guidelines that have changed so that 20% equity of the home is no longer necessary. To qualify, you must not be behind in your mortgage, with no more than 30 days late in the past 12 months. Your mortgage must be Fannie Mae or Freddie Mac owned, as your first-time mortgage, and the lender must be in deal in providing you with a second mortgage. The home must be your former residence.
Loan Modification: Homeowners behind on their mortgages can find relief through this option. If you are facing foreclosure, the lender will work with you to rework your loan, so that it can be at a more affordable rate that can be as low as 31% of your gross monthly income, in case,granted your mortgage cost (including taxes, insurance, and Hoa fees) comes to more than that per month. Your lower payments can help your finances, the housing market, and the economy at the same time. To qualify, you must have Fannie Mae or Freddie Mac as your lender, and the home must be your former residence, with the loan originating no earlier than January 1, 2009.
Home Refinance Stimulus box - A solution to a Growing qoute