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Federal Loan Modification Program 2010

January 13, 2008

in Community Blog

federal loan modification program 2010

Many homeowners do not qualify for President Obama’s new mortgage modification program

While the press and the Presidents administration are actively supporting President Obama’s mortgage modification program the program does not fix the problem for everyone. The demographic areas of the country where the median price of homes is higher than the maximum qualifications for mortgage modifications simply do not have an option under the president’s new program.

Obama’s plan would help qualified homeowners refinance into lower-cost mortgages. It is only available for borrowers whose loans were less than $417,000. What they owe also must not exceed what the home is worth by more than 5 percent. In the Bay area only 8.4% of homes fit these requirements.

A huge portion of the home owners who are facing foreclosure do not qualify for this program. During the beginning of the 21st Century a large amount of home in the higher end of the real estate market were purchased on low variable interest rate loans. A large portion of these same homes were scheduled to receive a “balloon ” payment on their mortgage sometime between 2007 and 2010, as a result the monthly payments on these homes has skyrocketed out of control and now the owners can not meet these elevated payments.

Many of these homeowners are now in need of refinancing or mortgage modifications and due to the homeowner being in arrears in their mortgage payments they can not qualify for refinancing so for many of them their only option is to receive a mortgage modification. Well the Presidents new plan is not available to these home owners who purchased homes in the higher end of the market due to the limit set by the rescue plan.

Although the Presidents rescue program rules out these homeowners it does not mean that if you are a homeowner facing foreclosure in the bay area that you can not receive a mortgage modification.  Not all banks are currently adhering to these standards and even those that are may still provide a modification to your mortgage it just will not be subsidized by Federal Government funding. Consequently you will most likely have a more difficult time convincing the lender to make modifications to your mortgage.

If you are in need of mortgage modifications and you do not qualify under the presidents program than you may want to consider hiring a mortgage negotiation expert to represent you in making modifications to your mortgage. While there has been a national scare as a result of fraudulent mortgage specialists it does not mean you can not find a reputable agency to represent you. There are some guidelines you will want to follow to avoid being the victim of fraud.

  1. 1. Avoid an agency that requires a large upfront fee – never pay anyone who says they will represent you in a mortgage forbearance or modification for an upfront deposit.
  1. Do not select an agency that is prone to accepting the first offer from the lender- It will do you no good to get a forbearance that does not meet your needs. If your mortgage is higher than the limit set by the Presidents program then you will want to make sure you hire an expert that guarantees results.

 

  1. 3. Find a company that provides a free consultation by phone – A reputable company will not charge you a deposit until they review your situation and know they can help you.  A good reportable agency will use their time wisely and only represent you if they feel confident in their ability to be effective in your particular case.
  1. Find an agency this is endorsed by an attorney – You should find someone who can legally stop the foreclosure.

 

  1. Use an agency that has a reputation of being able to buy you time – For a forbearance that will truly be helpful your agency should be able to freeze your payments up to 6 months, in the case of financial hardship. They should also be able to stop any annoying phone calls you may be receiving from the mortgage company.

 

  1. 6. Even if you do not qualify under the terms of President Obama’s Avoid an agency that requires a large upfront fee – never pay anyone who says they will represent you in a mortgage forbearance or modification for an upfront deposit.
  1. Do not select an agency that is prone to accepting the first offer from the lender- It will do you no good to get a forbearance that does not meet your needs.

 

  1. 8. Find a company that provides a free consultation by phone – A reputable company will not charge you a deposit until they review your situation and know they can help you.  A good reportable agency will use their time wisely and only represent you if they feel confident in their ability to be effective in your particular case.
  1. Find an agency this is endorsed by an attorney – You should find someone who can legally stop the foreclosure.

 

10.  Use an agency that has a reputation of being able to buy you time – For a forbearance that will truly be helpful your agency should be able to freeze your payments up to 6 months, in the case of financial hardship. They should also be able to stop any annoying phone calls you may be receiving from the mortgage company.

 

Even if you do not qualify for a mortgage modification under President Obama’s current program that does not mean you do not have any options to avoid foreclosure.

Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude’s Mortgage Rescue

 

 

 

 

 

 

 

 

 

 

 

 

About the Author

Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit www.RescuedBySaintJude.com Saint Jude’s Mortgage Rescue

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