Wall street bankers gets a bailout, AIG gets another one, they're even talking about giving General Motors help. But the main question taxpayers, whose paying for these multi-billion dollar bailouts, want to know is ... what about homeowners? That's been the biggest complaint federal government officials receive from angry and confused homeowners through scathing phone calls, letters and emails.With the longest and most expensive election in history over, government officials can focus more on helping to establish a mortgage bailout plan. With a record number of homes falling into foreclosure each month, the federal government has launched the most sweeping action so far to help homeowners. The new mortgage aid plan will help streamline and speed up the process of negotiating hundreds of thousands of loans that are delinquent. Most of these troubled loans come under the Freddie Mac and Fannie Housing Agencies.
For this reason, they have been allowing many folks into a loan modification program that will give them the ability to actually pay off the loan over time. So what is this plan all about? Those who apply now are seeing that they can get back on a home plan that makes sense. If you are one of those folks who has a home payment each month that does not mesh with your current financial ability, then you can take advantage of modification by putting in an application.
(For example, if your home is worth $100,000 you have to owe at least $90,000). Homeowner must occupy the home. Homeowner must not have filed bankruptcy. Homeowners who qualify will receive all or some of the following . An interest rate drop, allowing the homeowner to pay no more than 38% of their income toward housing cost. Receive a loan extension from the traditional 30-year term to 40 years. To defer or delay the principal, interest free. This government program represents the biggest step yet in helping cash strapped homeowners avoid foreclosure. Most of these troubled loans, packaged into a mix of investments, has proved difficult to sort through. It's has taken the government longer to work out a plan to satisfy both borrower, lender and investor - all at the same time.
One of the most common questions is "Do I qualify for debt relief on my credit card bills?" Yes. You are given a credit card after the issuing bank verifies your credit status based on information on credit reports about your previous payments and your current income from employment. However, certain unforeseen circumstances could result in a loss of income if an individual suddenly loses his job or reduction in his income when he changes jobs. In such situations, he may find it difficult to keep up with his repayment schedules. Rather than writing off the entire amount, the bank will be willing to look at this program where it can recover most of the amount incurred on the credit card.
Other lenders are expanding their modification programs to help borrowers who are not behind but on the verge of falling behind, one of the first in the industry. Note: Previously most lenders would balk at modifying your loan until you were at least 2- 3 months behind. President-Elect Obama has called for a 3-month moratorium on foreclosures, to give the government time to work out a more extensive mortgage bailout plan. I'll continue to keep you informed in future issues as this and other mortgage aid plans go into effect.
For this reason, they have been allowing many folks into a loan modification program that will give them the ability to actually pay off the loan over time. So what is this plan all about? Those who apply now are seeing that they can get back on a home plan that makes sense. If you are one of those folks who has a home payment each month that does not mesh with your current financial ability, then you can take advantage of modification by putting in an application.
(For example, if your home is worth $100,000 you have to owe at least $90,000). Homeowner must occupy the home. Homeowner must not have filed bankruptcy. Homeowners who qualify will receive all or some of the following . An interest rate drop, allowing the homeowner to pay no more than 38% of their income toward housing cost. Receive a loan extension from the traditional 30-year term to 40 years. To defer or delay the principal, interest free. This government program represents the biggest step yet in helping cash strapped homeowners avoid foreclosure. Most of these troubled loans, packaged into a mix of investments, has proved difficult to sort through. It's has taken the government longer to work out a plan to satisfy both borrower, lender and investor - all at the same time.
One of the most common questions is "Do I qualify for debt relief on my credit card bills?" Yes. You are given a credit card after the issuing bank verifies your credit status based on information on credit reports about your previous payments and your current income from employment. However, certain unforeseen circumstances could result in a loss of income if an individual suddenly loses his job or reduction in his income when he changes jobs. In such situations, he may find it difficult to keep up with his repayment schedules. Rather than writing off the entire amount, the bank will be willing to look at this program where it can recover most of the amount incurred on the credit card.
Other lenders are expanding their modification programs to help borrowers who are not behind but on the verge of falling behind, one of the first in the industry. Note: Previously most lenders would balk at modifying your loan until you were at least 2- 3 months behind. President-Elect Obama has called for a 3-month moratorium on foreclosures, to give the government time to work out a more extensive mortgage bailout plan. I'll continue to keep you informed in future issues as this and other mortgage aid plans go into effect.
