The Home Affordable Mortgage Program is just one avenue to avoid possible foreclosure. Up until this point, however, homeowners could only get assistance if the situation that put them in financial distress in the first place had been resolved. Unfortunately, this left people who were victims of the declining job market without options for aid. Now unemployed homeowners in 18 states can also get the help they need.
Are you struggling each month to make your house payment, worrying that you will soon be unable to do so? On the other hand, maybe you are already in default, and you know that foreclosure is looming very close if you do not do something soon.
The chances of getting a mortgage post-bankruptcy have never been better as the Obama Debt Relief Program has opened many doors for the ‘American Dream’. It is in the waiting period of those 24 months where you can apply for a mortgage and show the lenders just how honest and forthright you have been in paying back debts and not creating new and bad credit files.
This is highly important to demonstrate to the lending institutions and something that you will want to really concentrate on from here on out. For those that are sick and tired of watching the hard-earned rental money fly out the window, it is time to get serious about looking for a fine mortgage. There are a few ways that you can improve your chances on landing a mortgage after bankruptcy if you follow these easy instructions. Firstly, you will need to go through the ‘waiting period.” Please make great financial choices during this time and only pay back passed-credit and by all means do not add on any more new-credit files, during this crucial time.
Mortgage Relief For Mortgage Companies
This finance option is typically used when property owners can reduce interest by at least 1-percent.
Prior to applying for AZ refinance, Arizona homeowners should review their current home loan documents to determine if a prepayment penalty exists. Many lenders offer borrowers a reduced rate of interest if they agree to remain in the home for at least five years. If borrowers sell or refinance early a penalty is assessed. Each lender’s prepayment policy varies, so homeowners must take time to determine early payoff penalty amounts.
Not all Arizona mortgage loans include prepayment clauses. FHA and VA loans do not include early payoff penalties, nor do home loans obtained through chartered credit unions.
Property owners should contact their mortgage provider to discuss loan terms and refinance options.
Refinancing in Arizona can be more challenging than other states. According to the U.S. Bureau of Labor Statistics, Arizona currently has an unemployment rate of 9.1-percent. Unemployment rates have increased by nearly 3-percent since July 2008; causing many homeowners to remain unemployed or entered into a new job earning less income.
This is huge; this will erase the bad loans that mortgage companies have on their books while helping the people who own homes that aren’t worth what they owe on them. Not to mention, it will solidify Fannie and Freddie by lowering the risk factor of insuring the loans. All and all, this is a noble plan. The problem is in the execution, this is typical bureaucratic idiocy that landed us in this mess in the first place.
In the 90′s Freddie and Fannie began making risky loans to low income families in an attempt to spur home ownership. These programs were initiated at the insistence of liberal minded legislators acting on behalf of special interest groups.
In turn, Freddie and Fannie corporate officers raised their salaries by millions of dollars as a result of the increased volume of loans the companies now facilitated. Ironically, Fannie and Freddie became two of the largest contributors to Democratic and Republican campaign funds.
The Obama Mortgage Relief Plan
Let’s face it; you may be one of the millions of Americans who may lose their home to foreclosure. Even though this is a harsh reality, the government has made provision and now this program, funded by stimulus money has been called the Obama mortgage relief plan.And that is just what it does. This plan has also been names the “Obama Mortgage Plan” by many people who have been helped.
This is because the current administration understands the problem and has earmarked about $75 billion to help American families who want get out of the recession.The Obama help to keep you in your home is a way out for homeowners to restructure their debt. The Obama mortgage relief program plans to assist over 4 million families to keep their bills current and in effect, the Obama help to keep you in your home plan can prevent the worst from happening.
The other part of the plan would help homeowners which have a mortgage owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners that are upside down on their mortgage, owing more than their home is worth, can refinance with a special program. Normally equity or LTV (Loan to Value) is a major factor in refinancing. The bank or lender is willing to take more of a risk if you have equity in your home. They believe homeowners are going to fight tooth and nail to keep their mortgage if it has 15-20% equity. Homeowners that are upside down on their mortgage currently have no options for refinancing into a lower mortgage rate. Their mortgage rates in many cases have adjusted and they are stuck with an inflated mortgage payment and declining home values. Removing these restrictions is estimated to help up to 5 million homeowners reduce their mortgage payments.
Keeping mortgage rates low for homeowners that can refinance and new homebuyers is key to stimulating the economy and keeping banks afloat. Mortgage rates may be reduced another .5 percent to a new historic low of 4% for a 30 year fixed mortgage. Overall the mortgage relief plan is solid, but it is not very clear how deep this crisis runs. The government has funneled billions of dollars into banks such as Bank of America, but they know little about the damage done to their balance sheets. From the sign of the banks declining market value and need for more bailout money it is safe to say the government may be in for a big surprise when they get a in depth look into the banks they have been assisting.
A mortgage modification is a little different than a mortgage refinance and its main purpose is to modify the terms of you current mortgage assistance in order to devise a loan that is affordable for you. Through a mortgage modification, you are lowering your monthly payments by reducing interest rates and extending the repayment period of the loan. It is free to modify your loan. TYPES AND NATURE OF LOAN MODIFICATION- A mortgage loan modification was put into place for homeowners to completely eliminate their financial hardships. This modification can be permitted for the homeowner’s primary dwelling. Such residency must also be occupied. There are some eligibility requirements for these loan modifications and by fulfilling all of them you greatly increase your chances of having your loan modified.
There are Federal Housing Administration (FHA) and Veterans Administration (VA) mortgage modification programs available to some homeowners even if their loans are not FHA or VA loans. Then there are other federal mortgage programs that are offered through Fannie Mae and Freddie Mac to homeowners facing foreclosure. Whether you are now facing foreclosure, anticipate this may be a problem in the immediate future or you are seeking a loan modification to prevent the possibility of foreclosure there are loan modification programs for you. There are more than just the two programs mentioned below and new ones are being developed all the time. Keeping in touch with experts can make you aware of the latest information. Currently are two Federal Housing Administration (FHA) mortgage modification programs that people have been taking advantage of to save their home. These programs are commonly known are the FHA Secure Program and the Hope for Homeowners Program.
The FHA Secure program is designed for mortgage holders who agreed to Adjustable Rate Mortgage and now find, do to the current financial climate, in which their monthly mortgage payment has grown to a level they cannot satisfy. When the mortgage holder finds themselves in default, and in need of mortgage help, they may apply for this program. Qualified borrowers can then refinance moving to a fixed-rate mortgage with a monthly payment they can afford. Of course there are specific requirements that the borrower must meet along with fees for the service. A loan modification expert can help with the specifics.
Mortgage Assistance: Lowering Your Mortgage
Even as it starts to recover quietly from the loan mortgage burst that destroyed everything along with Wall Street, people still have a lot of problems especially regarding their homes. Millions of foreclosures have already happened and Millions more are poised to happen. But the government is trying to stop this by creating a stimulus program for loan modification. Also, for those who need to get a home mortgage but are in dire straights in terms of their financial situation there is the FHA Mortgage Program.
The major benefit of working with a mortgage broker is that once he understands a particular needs and has a good idea of your financial history, he will be able to suggest which lenders might be able and interested in helping you obtain your mortgage. Without the assistance and experience of a mortgage broker you may be forced into dealing with multiple lenders on your own. In this type of scenario may be looking for mortgages from lenders that a mortgage broker would have steered you away from for a variety of reasons.
Choosing a broker doesn’t necessarily cost you any more money than if you had just walked into a local bank at lunch time and applied for the mortgage. When you receive the paperwork from your lender, No matter who that might be, you will always see a commission for a broker or loan officer. If you are dealing with a mortgage professional you should ask him right up front what he charges for a commission. These brokers are all freelance. They work for themselves. This means they can set their own fees or commission levels. This also means that these fees are highly negotiable. In other words, if that mortgage broker can’t get you to the right lender in order to get your application approved, he makes nothing.
Each kind of approved mortgage by the authority is specialized and should be applied for independently. The ability to handle the payments in light of one’s monthly expenses is what is focused when determining qualification. Unlike traditional loans, credit scores are just secondary considerations that do not have as much impact. The important thing on how to qualify is to compute one’s DTIR or debt to income ratio. These two conditions are vital for a borrower to get into the program: first of all, one’s expenses in his or her monthly mortgage payments should not be more than twenty-nine percent of one’s income (gross); secondly the total debts of the applying borrower should not be more than forty-one percent of his or her monthly income.
