July 26, 2011
Mortgage Relief Fund: Should You Stop Making Your Mortgage Payment?
As we all know, there are no more stated income, or any sub prime loans since the market has crashed. Now lenders are focusing only on full documentation loans. As a result, it is becoming more and more impossible for homeowners to refinance their mortgages because they are either upside down or they won’t qualify because they have no income. Now homeowners can only either talk to their mortgage relief fund company to do a mortgage loan modification or give up and let the house go to foreclosure.
When shopping for adjustable rate mortgages, consumers should make sure that they have a firm understanding of the loans’ margin, its associated index, the adjustable intervals, and the caps for the adjustments. Consumers should also be aware that the first adjustment may be potentially larger than that of future adjustments. For example: A loan officer quotes a 3/1 LIBOR ARM with a start rate of 4.000% and a 2.25% margin and a initial rate cap of 3% and then annual rate caps of 2% for every year thereafter.
The new Obama Plan or Making Home Affordable Plan is now dictating the direction that many lenders are tailoring their policies in reference to loan modifications. This new government loan modification program were designed for home owners that are currently on time, as well as home owners that have missed a few payments. Its also states on the main Making Home Affordable Plan website that “”responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default.”
Now what does “risk of imminent default mean? This means that a home owner that has a mortgage relief fund where the rate has recently adjusted and the payments are no longer affordable or a significantly loss of income or any other type of hardship, would make the home owner qualify under the new Obama Plan. Now one important reason not to be delinquent with your mortgage payment, is that is will disqualify you from getting a refinance under the Making Home Affordable Plan, refinancing under this plan could help home owners refinance at current market values so they are no longer upside down with their current mortgage and get a more stable fix rate loan.
If you are trying to find a good modification company that will help you with your issues, you will need to visit my blog for more important information as well as resources that may help you with any questions that you may have concerning the industry.
Learn more about Obama Mortgage Relief Plan Qualifications.
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