How Would You Qualify For Federal Government Loan Modification Program?
$75 billion dollars is the allotted budget by the Federal Government to help homeowners who are suffering foreclosure with loan modification program. Estimated 7-9 fighting families will benefit with the program and get a lower mortgage payment so they can save their home. This program is not for everyone, you must very first qualify to benefit from this.
Here are the general guidelines for loan modification eligibility:
o You must be living in a house as your primary residence.
o You don’t have a 2nd mortgage.
o You must prove your source of income.
o Your house payment should be more or less equal to your gross monthly equal.
o You don’t have to be neglectful for you to apply for this loan modification program.
o Loan Modification Program is for free but you should be able to submit an acceptable application.
What are the features of this Loan Modification Program?
o 2% reduction to your interest rates.
o The loan terms will be extended up to 40 days.
o There would be a principal reduction with Government sharing.
Since loan modification program is voluntary it is expected that most lenders will participate. The government is suggesting incentives. It is in the form of $1500 for mortgage holders. To add with that, homeowners who will stay with their current modified loan will also have monetary incentives each year they remain current in Five years.
For homeowners who are interested with this program you should begin gathering all the necessary documents that is needed for the application. You will be required to accomplish the loan modification form along side the documents that you need to submit. Lenders and banks are expecting to receive applications in response to this program suggested by the federal government. Successful applicant will be expected to do a lot of paperwork and they will have to do a lot of go after up because lenders are expected to be flooded by so many borrowers who want to apply for assistance.