Obama Mortgage Relief Program Update by HBCNews

Obama's Mortgage Relief Program Growing

By EDMUND L. JOHNSON and MATTHEW L. WALD

WASHINGTON - Mortgage Loan Modification is the only solution to save your home and stop foreclosure. Some 650,000 troubled borrowers have been put into trial loan modifications under the president's foreclosure rescue plan, the Treasury Department said Tuesday. That number represents only 20% of eligible homeowners.

Treasury says 58 mortgage companies are now involved in the program, up from 38 in July. The companies have requested financial information from almost two-thirds of eligible borrowers and say they are on track to have 1,000,000 loan modifications in place by December 1st.

What is Obama's Mortgage Relief Program & How do you qualify?

Who is eligible?

Have obtained the mortgage before Jan 1, 2009

The home should be owner occupied

May be default or at risk of default

Have the primary mortgage of less than $729,750

Who is NOT eligible?

Speculators, who bought as investment

Those who misrepresented their income in the loan application

Should not be a jumbo mortgage

What you should do?

If your total debt (like car loans etc) is more than 55% of your income, you are still eligible but should undergo debt counseling

You should prove that you have income to make loan repayments.

Use this Mortgage Modification Website to see if you qualify for Any Loan Modification

Benefits you will get

Refinance mortgage loan to low interest, rates cannot be less than 2%

Borrowers who are prompt in making loan repayments will get incentive bonus of $1000 per year for 5 years

Lender will lower the monthly payment to 31% of the gross income.

The refinance will last for 5 years

The White House has called on servers to start on at least 1,000,000 modifications by December 1st. It is estimated that it could benefit 8 to 9 million homeowners from the new modification procedures. Even if you don't meet the above eligible requirements you might still qualify for other Mortgage Modification Programs.

Find if your Loan Qualify for any Mortgage Modification Program

Every day you put this off is probably costing you money. Homeowners whose loan have been scheduled for foreclosure or missed one or two payments should talk to their loan servicer immediately to postpone foreclosure. If you qualify for loan modification please reach out to your servicer or housing counselor. Please do not pay any upfront fees with out receiving any service.