Loan modification attorneys throughout US are helping individuals stay in their homes by working on their behalf to negotiate with the lenders and get a top flight loan modification for their clients. An experienced loan modification attorney can obtain the best interest rate and the best terms for their client’s loan modification, serving homeowners to stay in their homes and keep away from foreclosure proceedings.
The new administration of Obama loan modification has come out with the best possible offer for the financially struggling homeowners. Many of the homeowners now have the ways to refinance their houses, even if the present debt is more than value of the house. Refinancing home mortgage has never been easier than this. In some cases the effective Mortgage refinance rate of interest in this home affordability plan is as low as 2%*.
The new housing affordability plan had to be framed in such a way that those debtors who had intentionally defaulted should not be benefited by it. The plan had to be such as to benefit the genuine debtors who wanted to pay off the debt but because of unfavorable circumstance could not do so. This plan has been specially framed to help the debtors who are facing severe financial crises to meet the monthly payment. This is not an alternative to mortgage refinance. The Obama administration wants to help the homeowners at paying the monthly payments. About 9 million homeowners could be helped by this affordability plan.
Federal Loan Modification Programs in 2010 Apply Now..!!
One of the characteristics of this loan modification plan is that the debtor will not be paying total monthly payment that exceeds 31%of the gross income. This plan is applicable where the monthly payment exceeds the borrower’s total gross income by 31%.Some of the ways by which this goal can be achieved are lengthening the duration of the loan and decreasing the rate of interest in some cases to even 2%. According to this plan the lenders are being offered incentives. Prior to the housing affordability plan the lender could have houses on the books but could not recover the debts. In this arrangement the lender can take the ownership of the house but cannot sell it. This plan is not meant for those debtors who are regular at paying the present monthly payment but for those who can prove that they cannot make any future payment without any assistance.
The second feature of the new housing affordability plan is with reference to the situation in which the present mortgage is fully paid and the new terms of the new mortgage agreement have been drawn up. One of the qualifying criteria for availing this plan is that the amount of mortgage should not exceed 105%of the home value. Mortgage refinancing is possible if one has the mortgage guaranteed by or through Fannie Mae or Freddie Mac. Only fresh loans for mortgage refinance would be eligible for 2-3% rate of interest. Only the residential property will get the benefit of this plan. Thus, the federal loan modification program through new housing affordability plan are going to be a blessing to many homeowners staring in the mouth of foreclosure. This is not only going to decrease the monthly payment but also the rate of interest.