The US government’s save your home loan modification package has two basic options for homeowners who are interested in ways to save their houses from foreclosure. This package was designed by Obama administration for giving the borrowers assistance for lowering their monthly mortgage payment to help them in avoiding losing their homes to foreclosure.
The basic guidelines for the loan modification program are:
1. Borrowers should be living in their homes as their home residence
2. This loan should be owned by either Fannie Mae or Freddie Mac
3. The loan payments cannot be delinquent
4. Offers prevailing lowest interest rates
The save your home loan modification has been designed to help the homeowners who face the risk of default, but have to yet defaulted on their mortgage payments. All those who have adjustable rate mortgage would want to refinance their fixed rate loan and avoid any kind of payment shock upon their rate adjustment.
The loan modification also permits homeowners who owe up to 25 percent more than their current house value to qualify, and this has been incorporated to address the loss of equity that has been experienced by several homeowners. There are several conditions for qualifying for this program and you should discuss this issue with Prudent law group. You may also have to prove your income with requisite documents.
The qualifications for loan modification program are standard and have been set by US Treasury Department. You will have to submit an application, which includes detailed accounting of your current gross income, Affidavit of Hardship, and monthly expenses. All this information will be reviewed carefully to ascertain your eligibility. Once you are approved, you will give 3 trial payments, and on being successful in temporary loan modification, all the terms will be made permanent. It is very important that you prepare all your financial statements in a correct way so that when your figures are reviewed by the lender, they should see you as a best candidate. Prudent law group can prepare all your documents and will assist you to qualify for this program.
