Loan Modifications get a Boost from the Stimulus Plan
March 9, 2009
A new plan has been hatched making loan modifications easier for struggling homeowners to obtain and lenders/servicers to provide.
Here are some of the details of the plan:
- Loans originated on or before January 1, 2009 are eligible
- First-lien loans on owner occupied properties where the unpaid principal balance is equal or less than $729,750 qualify
- Full documentation must be provided by all borrowers (including but not limited to income, pay stubs, most recent tax return and affidavit of financial hardship)
- An IRS 4506-T (Request for Transcript of Tax Return) form must be signed
- Property owner occupancy status will be verified via a credit report and other documentation
- Incentives will be offered to lenders and servicers to modify at risk borrowers who are current on payments
- Loans can only be modified once under the program
- The program will run through December 31, 2012
- Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income
- Modification sequence first requires reducing the interest rate then if necessary extending the term or amortization of the loan up to 40 years.
If you are interested in discussing any of these items or to obtain a better understanding of how the plan may help you, feel free to contact Loan Mitigation Advocates directly.
Comments
Got something to say?
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
CORPORATE BROKER’S LICENSE #01858172