The Making Home Affordable Program is intended to help out about 9,000,000 American homeowners. There are many qualification requirements, and not every owners of single family residential would directly get advantage through the plan. In spite of the government’s active participation it could still be in a homeowner’s best concern to get specialized legal support in dealing with mortgage issues. Mortgage relief and credit card modification deal straightly with consumer problems occurring from the present recession.
Features of the Obama Loan Modification Plan
A home loan modification, not like a refinance isn’t a new loan. Somewhat it’s modifying in the terms of a current loan. The government is offering incentives for lenders to contributing in the loan modification program and for homeowners to remain present on a modified loan. The incentives are as follows:
- The lender gets up to a $1,500 payment for getting eligible for mortgage loan modification
- The government would share the cost of a loan modification through the lender for a modification that lesser the borrower’s cost to less than 38% of gross earnings down to 31%
- The borrower would get $1,000 yearly for up to 5 years for remaining existing on the loan
- The entire government grant for the program can run up to $10,500 per house
General Qualifications for Obama Loan Modification
- The loan should be controlled through Freddie Mac or Fannie Mae
- The home should be the owner’s main residence
- The mortgage should start off before Jan. 1, 2009
- Have an due balance which is up to or less than $729,750
Features of the Obama Refinance Plan
Refinancing mortgage is availing a new loan to swap the current loan. The main feature of mortgage refinance program is the allowing the loan amount to go beyond 80% of the home’s cost. Earlier no new loan can be on paper that was more than 80%, by drop in prices this variation in standard must allow many to get advantage of the present low mortgage rates of interest.
General Qualifications for Obama Refinance Program
- The home which is to be refinanced should be occupied by owner
- The home loan should be controlled by Fannie Mae or Freddie Mac
- The mortgage payments are present, there should not be any payment more than 30 days delayed in the past 12 months
- There is enough income to maintain a new mortgage
- The present mortgage is between 80% and 105% of the home’s present value