Obama's Foreclosure Plan » qualify

Working Your Way Out of a Foreclosure Problem

Mark — Sat, 02 May 2009 12:20:56 +0000

Stress at home is becoming a much larger issue than ever before! As more people lose their jobs or have to settle for lower paying positions due to company cutbacks, many of us are facing something we never thought we would, Foreclosure on our Homes! For those of us who take pride and responsibility in how we handle our finances, this is like a swift kick in the stomach as we deal with a never imagined, very serious problem!

The First Steps in Avoiding Foreclosure

If you are faced with a mortgage payment you can no longer afford to pay, one of the first things you need to do is contact your lender directly to see if they have some kind of solution for you! If you have ever let someone borrow money of your own, you know the one thing you hate the most, is not being paid back! It only gets worse and can even ruin a friendship when the person avoids your calls and just stops talking to you!

Your lender is not going to go away… and they don’t bite! Sure, they want their money just like you would, but its not personal with them! They don’t know you very well and their main interest right now is the same as yours, keeping you in your home! If you simply prefer trying to go around your lender and finding another solution, there are many loan modification services in the market right now that you may qualify for, regardless of employment status and income!

Learn Your Borrower Rights

A great way to spend an afternoon and understand the foreclosure risk for your home, is to read your actual mortgage loan documents and understand your state’s foreclosure laws. By knowing exactly what the lenders and your own rights are under state law, may just be the best info you can have in your pocket!Although the court systems just overturned a Judges right to modify your loan during a bankruptcy hearing, there are many local laws that are on your side and may keep you in your home for 3-6 months, while you get back onto your feet!

Find Help Using Third Party Services

The easiest way to avoid a foreclosure is not to let it happen at all! As you can imagine, there has been a crop of loan modification services popping up all around the country to try and help you out of this problem! Of course, they make money by matching people who may be in foreclosure trouble with lenders who are willing to help, but many of these new loan servicing companies have an inside track to the right lenders and can make the process quick, easy, and painless to you! With nothing to lose, you can get started by filling out a simple web form, and let them go to work for you today!

Post from: Obama's ForeClosure Plan Website

Working Your Way Out of a Foreclosure Problem

Is the Foreclosure Bailout Working for You?

Mark — Sat, 04 Apr 2009 18:54:22 +0000

Last week I mentioned the friend of mine who was contacted by Citigroup to refi his home… Lets just call him Tom. Well, Tom is the now in full swing talks with Citigroup about his home refinance and it all looks very good for him to have a new mortgage within the next 7-10 days!

Why did He Qualify for Refinancing?

Simple… his house payment was more than 31% of his monthly gross income AND he was a few weeks behind on the current payment (on purpose, to get refi’d)

He got a letter from Citi offering to assist and when he called them, they went gaga over helping him! He has a full time job and makes about 38k per year.

My question to everyone reading…

Did You Qualify for Foreclosure Assistance?

If so… tell us about it! If not, please tell us why!

Post from: Obama's ForeClosure Plan Website

Is the Foreclosure Bailout Working for You?

Foreclosure Prevention Plan – Will it Save Your Home?

Mark — Mon, 23 Feb 2009 20:03:13 +0000

With the Obama Foreclosure Prevention Plan ready to come into effect on March 4th, the one main question we are patiently awaiting an answer to: Will the Plan Save my Home?

The short answer is YES, but as with everything… its much more detailed than that! Lets review the Obama Foreclosure Plan from end to end, so you can decide.

Does My Loan have to be with Fannie Mae or Freddie Mac?

At this point, Yes. However, President Obama is encouraging others lenders and guarantors to step up and negotiate loans with their customers, you and I!

How is this Going to Help Me?

Assume for a moment you bought your home for $200,000 2 years ago, and you still owe $190,000 in principal. Lets also assume that the housing market in your area has suffered due to the economy, and under current market conditions, your home is only valued at $180,000. That means you are upside down on your loan, and owe more than its worth, also known as Negative Equity. At this point, no bank would allow you to refinance under the past practices, since you would be an instant risk, regardless of your credit score.

Under the Obama Foreclosure Plan, banks will allow you to finance up to 105% of your homes market value, as well as getting a reduced interest rate to make the payments more manageable.

What if I have a First and Second Mortgage?

As long as your primary or first mortgage does not exceed 105% of your homes market value, you still qualify.

Will My House Payments go Down?

This really depends on many factors, but, if you are in a situation with a variable rate or interest only loan on your home, the Foreclosure Plan could reduce your monthly payments significantly! As March 4th comes to us and you speak with your lender, you first need to find out if the new rate will be lower than your current rate. If so, then you will definitely reduce your monthly expenses.

On the other hand, if you already have a low fixed rate, there may be no benefit in refinancing your current loan!

Will Refinancing Reduce the Principal on my Home Loan?

No. The Foreclosure plan is designed to get creditworthy homeowners into loans with fixed rates, making them easier to manage in their monthly budget. What the new loans will do however, is lower your monthly payments, thus making the risk of foreclosure much lower.

Do I need to be Behind on My Payments Now?

No. The Obama Foreclosure plan is designed to help anyone, regardless of whether they are in trouble now, or just heading for financial trouble in the near future.

How Do I Know if I Qualify?

There are very few requirements for the Home Loan Modification Program…

You MUST Live in the home and it must be your Primary Residence. In other words, they will not refinance investment property.
Your monthly payment on your home loan is more than 31% of your monthly income!
The amount of your loan does not exceed current Fannie and Freddie maximum loan amounts. (Lookup limits in your area)

Will the Foreclosure Plan help Everybody?

No. Unfortunately, there are far too many in need and the plan is designed to help approximately 9 Million homeowners. There will still be a few that fall through the cracks.

How Can I Get Ready to Qualify?

At this point, the methodology is being put in place to handle the large number of requests expected to come in. In the meantime, you can get ahead of the crowd by preparing your documents for your lender.

Recent Paystubs and Income information for your household.
2008 and 2009 Income tax Returns
If you have a second mortgage, have all documentation
All credit card statements as well as monthly payments and balance information.
Information on all car loans and student loans you are responsible for.

I’m Ready – Whats Next?

Although the plan does not take any action until March 4th, you are encouraged to get in touch with your lender as soon as possible, to start gathering any information they may need for the Obama Foreclosure Plan.

More information can be found on the WhiteHouse Blog

Post from: Obama's ForeClosure Plan Website

Foreclosure Prevention Plan – Will it Save Your Home?