The Federal Government is geared to offer two options to struggling homeowners: Refinance and Loan Modification
Refinance is offered to qualifying homeowners that are going through hardship in which refinancing their first mortgage at a lower rate allows them to bring down the monthly payments with no costs attached to the refinance.
Modification Options: pays lenders to re-work loan terms and lower monthly payments.
Home Affordable Modification Program, or HAMP, is designed for homeowners who are likely to lose their homes because they can’t keep up with mortgage payments.
Qualification is based: your primary residence with the first mortgage being less than $729,750; which had to be originated on or before Jan1, 2009. Your monthly payment on your first mortgage must be greater than 31% of your monthly gross income. A second mortgage or a line of credit does not count and is not taken into consideration for the ratio. You must demonstrate financial hardship such as a jump in mortgage payment or a drop in income. This program is schedule to expire at the end of 2012.
Process: lower your interest rate, reduce your principal, or extend the term of the loan. Interest rate may be reduced as low as 2%.
Home Affordable Foreclosure Alternatives program, or HAFA offers lenders financial incentives to opt for a short sale or deed-in-lieu rather than a foreclosure. This program goes into effect on April 5, 2010.
If you need further info email me at: mbracket@hotmail.com
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