Home Stimulus Help - Guidelines and Facts
Home stimulus help is available for those struggling with their mortgage payment and even facing foreclosure under President Obama's Stimulus Package.
75 billion dollars has been allocated by the Obama administration to try to stop the rising tide of foreclosures by offering financial incentives to lenders to modify mortgages.
These mortgages seek to provide a monthly mortgage payment (taxes, insurance and homeowner dues included) that is less than 31% of a homeowner's gross monthly income.
This is done through a variety of methods, used alone or combined to reach the targeted monthly payment: oReduced interest rate, as low as 2%.
oExtended loan term, as long as 40 years.
oWaiver of late fees oPortion of principal forgiven Home stimulus help is available to those who qualify.
You must meet the following guidelines just to apply: oYour home must be your primary residence.
oYour current payment must be over 31% of your gross monthly income.
This payment can include taxes, insurance, and any homeowner dues.
oThe loan on your home must have been originally written on or before January 1, 2009.
oThe total loan amount cannot exceed $729,750.
oYou must be able to document financial hardship.
Something over which you have no control must have increased your expenses or decreased your income to make it impossible to make your monthly payment.
Some examples would be job loss, medical bills or illness, military service, or death of a spouse.
You will have to submit a letter, preferably one page that details your experience.
oYou also must be able to document that the new modified payment would be quite affordable for you and enable you to faithfully meet your obligations.
oYour lender must be on the Treasury Department's Approved Lender List.
You should compile all your information before you approach your lender to ask for a loan modification.
You can only get one loan modification on your property, and similarly, you can only apply one time! So, it is imperative that you correctly formulate your application and attach all necessary documents to verify your finances.
Millions of homeowners will qualify to get assistance.
The financial incentives make it advantageous to the bank to help you, and foreclosure is an expensive, time-consuming thing for a lender too.
So, don't delay seeking home stimulus help because these Stimulus Package modifications are available only for a limited time.
75 billion dollars has been allocated by the Obama administration to try to stop the rising tide of foreclosures by offering financial incentives to lenders to modify mortgages.
These mortgages seek to provide a monthly mortgage payment (taxes, insurance and homeowner dues included) that is less than 31% of a homeowner's gross monthly income.
This is done through a variety of methods, used alone or combined to reach the targeted monthly payment: oReduced interest rate, as low as 2%.
oExtended loan term, as long as 40 years.
oWaiver of late fees oPortion of principal forgiven Home stimulus help is available to those who qualify.
You must meet the following guidelines just to apply: oYour home must be your primary residence.
oYour current payment must be over 31% of your gross monthly income.
This payment can include taxes, insurance, and any homeowner dues.
oThe loan on your home must have been originally written on or before January 1, 2009.
oThe total loan amount cannot exceed $729,750.
oYou must be able to document financial hardship.
Something over which you have no control must have increased your expenses or decreased your income to make it impossible to make your monthly payment.
Some examples would be job loss, medical bills or illness, military service, or death of a spouse.
You will have to submit a letter, preferably one page that details your experience.
oYou also must be able to document that the new modified payment would be quite affordable for you and enable you to faithfully meet your obligations.
oYour lender must be on the Treasury Department's Approved Lender List.
You should compile all your information before you approach your lender to ask for a loan modification.
You can only get one loan modification on your property, and similarly, you can only apply one time! So, it is imperative that you correctly formulate your application and attach all necessary documents to verify your finances.
Millions of homeowners will qualify to get assistance.
The financial incentives make it advantageous to the bank to help you, and foreclosure is an expensive, time-consuming thing for a lender too.
So, don't delay seeking home stimulus help because these Stimulus Package modifications are available only for a limited time.