Obama"s Home Stimulus Package - What"s in it For You?
President Obama's Home Stimulus Package is in the news constantly, but have you considered what assistance may be available to you? If you are facing foreclosure or just struggling with your monthly mortgage payment, there may be government help available to you in the form of a loan modification.
To apply for assistance, you must: 1.
Be in a state of financial hardship due to job loss, military service, medical bills, divorce, death of a spouse, or a similar occurrence over which you had no control.
2.
Live in this home as your primary residence.
3.
Have a mortgage payment, including taxes, insurance and homeowner dues, that is more than 31% of your gross monthly income.
4.
You loan must have been signed on or before January 1, 2009.
5.
The total loan amount cannot be more than $729,750.
6.
Your lender must be on the Treasury Department's list of approved lenders.
If approved for a modified loan under Obama's Home Stimulus Package, you will obtain a lower monthly mortgage payment which is less than 31% of your monthly gross monthly income.
This will be accomplished through several tools at your lender's disposal, of which one or all may be used.
1.
Reduced interest rates, maybe as low as 2%.
2.
Extending the length of the loan's duration, possibly to 40 years.
3.
A waiver of late fees.
4.
A possible reduction of principal, if necessary.
If you qualify to apply, you must provide complete documentation of your financial situation.
You will need to submit a Hardship letter which details the events that have led up to your mortgage difficulty.
Equally important, you absolutely must present a scenario to the lender that shows how the reduced payment will be comfortably affordable for you and that you are committed to fulfilling your mortgage obligation.
The government provides financial incentives to lenders to grant these reworked loans, so they are motivated to help you.
But, you still must completely and accurately provide all requested documentation in your application.
Before you contact your bank, compile your budget and necessary documents.
You can only apply one time, so be sure you have everything compiled correctly.
To apply for assistance, you must: 1.
Be in a state of financial hardship due to job loss, military service, medical bills, divorce, death of a spouse, or a similar occurrence over which you had no control.
2.
Live in this home as your primary residence.
3.
Have a mortgage payment, including taxes, insurance and homeowner dues, that is more than 31% of your gross monthly income.
4.
You loan must have been signed on or before January 1, 2009.
5.
The total loan amount cannot be more than $729,750.
6.
Your lender must be on the Treasury Department's list of approved lenders.
If approved for a modified loan under Obama's Home Stimulus Package, you will obtain a lower monthly mortgage payment which is less than 31% of your monthly gross monthly income.
This will be accomplished through several tools at your lender's disposal, of which one or all may be used.
1.
Reduced interest rates, maybe as low as 2%.
2.
Extending the length of the loan's duration, possibly to 40 years.
3.
A waiver of late fees.
4.
A possible reduction of principal, if necessary.
If you qualify to apply, you must provide complete documentation of your financial situation.
You will need to submit a Hardship letter which details the events that have led up to your mortgage difficulty.
Equally important, you absolutely must present a scenario to the lender that shows how the reduced payment will be comfortably affordable for you and that you are committed to fulfilling your mortgage obligation.
The government provides financial incentives to lenders to grant these reworked loans, so they are motivated to help you.
But, you still must completely and accurately provide all requested documentation in your application.
Before you contact your bank, compile your budget and necessary documents.
You can only apply one time, so be sure you have everything compiled correctly.
