The American Dream is still as elusive as it was back then. Today, most people believe that the American dream is dead, given how difficult it has become to own a home. However with the Obama administration, the Making Home Affordable program was launched to help the crisis that had hit the home market, as well as enable most people buy and keep their homes. You may wonder if you are eligible for the MHA program, or if it is the right thing for you.
What is Making Home Affordable?
Making Home Affordable is a program that helps people who already own homes, avoid going through a foreclosure. It does this through incentives given to the lender or loan servicer so that they can modify the mortgage loans to terms that the home buyer can easily afford paying. Thus, in a way, it can be said that it is getting a loan modification, though help from the government.
Do I Qualify For a MHA?
This question will give us the answer to whether the Making Home Affordable program is available for you. So, for you to qualify for a MHA, you must meet the following criteria:
- You must have signed for your mortgage loan prior to January 2 2009.
- You must currently be the owner of the mortgage and live in the mortgaged property. This home is limited to only four units.
- Your monthly loan repayment must be more than 31% of your gross (pre-tax) monthly pay.
- You should be in a position where you are unable to make your loan repayments due to some considerable financial crisis.
- If you have a one unit home, you should owe $729,750 or less for that unit.
If you fulfill all of the above, then you may be considered eligible for enrollment to the MHA program. You can also talk to a loan modification specialist, who will help you get an affordable home, if you fail to meet the above criteria.
If you currently have a mortgage and have not yet heard about loan modification then this is the right place to be right now. Most people often fail to raise enough money to pay off all their home debts and finally be free to call their mortgaged houses their own. Many people in America are currently homeless; you may wonder how it is that they got to that place. You may not wonder any longer, when you check your pay and realize that you will not be able to repay your home loan within the given due dates.
Is a Loan Modification Important?
A loan modification is extremely important, if you currently are in a financial crisis, and are unable to make your monthly or repayments. The loan modification will often be made in your favor. Your lender will have to revise the initial loan agreement, and readjust it (modification) to terms that will be bearable with your current financial situation. This is much better than losing your home, and ending up on the streets.
Where To get Loan Modifications
There are a number of places where you can get a loan modification.
- Your lender will probably be a nice place to start. If your lender is a bank, you may ask whether they do have loan modifications you can apply for. Some banks have these services, but do not advertise them so you will need to check with your bank, if they happen to also be your lender.
- If your lender does not provide these services, then you can look for programs that offer loan modifications. One such program is the government programs, such as Making Homes Affordable (MHA). You can talk with government agencies that deal with home ownership, and find out what they have to offer.
- At other times, you may lack the qualifications necessary to be eligible for a government loan modification. There are other third parties, mostly attorneys, who have experience with loan modifications, and for a small fee, may be able to talk to your lender on your behalf, for a loan modification application. One of these third parties is the loan modification companies, that offers loan modification attorneys to home owners who need the service.
In most cases, a foreclosure is a notice given to a home owner who has defaulted on the agreed loan repayments. A home owner can get a foreclosure notice either from the lender or from the court. Most often, the foreclosure notice will take about 30 days up to even three months before any action can be taken on part of the lender. In such a case, the home owner would try their best to get all the defaulted payments to the lender. When they fail to do so, the lender will take further action to give them an eviction or sale notice.
Should You Respond To The Notice?
By all means, yes. You should not ignore any notice of foreclosure, hoping that it will all go away. Instead, try to gather as much information as you can about foreclosures, as well as looking into options that can help you deal with the foreclosure. It is better to be prepared than be caught unawares.
How To Keep Track Of Your Foreclosure Case
This will often depend on the type of notice you receive from your lender.
If it is the lender himself who gave you the foreclosure notice, then by all means, keep in touch with them to know the status of the foreclosure case. If however the foreclosure notice came from court, it will be advisable for you to look for some legal help. An attorney who deals with home foreclosure will be the best person to go to here. Handling things on your own may lead to some important details being overlooked, which may only add to your problems. There are also some home ownership experts, like the loan mediation depot, who can assist you with getting a loan modification, so that you can keep your home, and repay the loan under more suitable terms.
Most home owners today are faced with the challenge of not being able to repay their mortgage in full, for them to enjoy the benefits if truly owning their own home. When such circumstances arise, may people opt to go for modifications or other ways to have their loans adjusted. This may however not always succeed, and a foreclosure becomes imminent. In such foreclosures, depending on the circumstances, a lender may opt to use a sheriff sale to repossess the home or property.
What Is A Sheriff Sale?
A Sheriff sale is more of an auction on the mortgage property you are unable to repay. If you are unable to repay the loan, the lender will probably take you to court and repossess the home. After this is done, you will likely have to move out of the home, and the Sheriff will auction it to the highest bidder. The lender will then get his money from the bid.
How Can I Stop A Sheriff Sale?
You can take the following measures to stop a Sheriff sale:
Filing for chapter 13 bankruptcy is one way of stopping the sheriff sale. This should however be done prior to the set date for the public auction. You will also have to get a very good attorney who deals with bankruptcy for him or them to help you with the situation.
In some states, you can go to your lawyer and ask for an adjournment on the foreclosure. In this way, the sale of the property will be put on hold, for a minimum of about two weeks. Some states will allow you to adjourn the sale as many times as possible. However, the most important thing is to get a mortgage modification expert that will help you repay the loan, instead of losing it all together.
Affordable homes are not easily available in the home market. You may see an advertising that advertises for affordable home loans, but if you look at the fine print, you will realize that you may end up paying even more than what you were running away from. In such cases, it is much better to go to home mortgage programs that offer affordable home loans. Often, these organizations will have a working relationships with most home loan lenders, and may be able to work out something for you.
Where to Start
There are different organizations that offer affordable home loan options. Choosing among the available options will often depend on the qualifications necessary for eligibility. The most commonly available programs include:
- Government sponsored programs. These are offered under government housing agencies. For you to enroll, you can visit their websites, or offices where you will be given details on how to enroll.
- There are also some organizations that offer Housing Services, and will be in a good position to give you expert advise on how to get a loan modification. They have directed many home owners to gain access to home affordable mortgage programs.
- You can also visit other third party organizations that offer affordable home mortgage programs, in the form of loan modification. You can find these on-line, such as a loan modification lawyer , as well as others through recommendation from people who have used their services.
Before attempting to go for enrollment at organizations that offer home affordable mortgage programs, it is good to check first what the requirements are. The government agencies often have eligibility criteria for the home affordable program. Check the website and see whether you meet these requirements. If you do not, then the other organizationals might be of help, and they may enroll you for programs that will relive you of the original terms to more favorable terms of mortgage payments.
If you currently have a mortgage and are unable to make your monthly payments, then you are in the right place. Financial hardships can hit and you may be unable to even sustain your most basic needs. If you continue for some period of time without making mortgage loan repayments, then it is highly likely that your home will be ready for a foreclosure. You do not want this to happen. A loan modification might help you out of this situation.
What is A Loan Modification?
A loan modification is also known as mortgage modification; in fact, any loan can be modified. It is a process whereby the terms given in the original loan agreement between borrower and lender are reviewed and adjusted, or modified to a new and more suitable term. This normally happens when the borrower is facing some financial hardships and wont manage to make the monthly repayments as per the original terms. Are there any benefits in getting a loan modified?
Benefits of Loan Modification
With a loan modification, you get to enjoy fixed interest rates that can save you a lot of money. With the fluctuations that most loans come with, it is highly likely that your mortgage interest rates may fluctuate from time to time. With a loan modification, however, it becomes easier to repay a loan with fixed interest rates.
You also get to have your loan term extended with a modification on your mortgage loan. This will help you repay the loan over a longer period of time as you try to get back on your feet, financially. This, however, is often applied in situations where the interest rates remain the same.
Another advantage of taking a loan modification is the possibility of your being able to repay other, more pressing loans such as student or car loans. Once you get a loan modification on your mortgage, you can easily repay other loans that you have without much worry of missing their due dates. A loan modification company will work with you and help you get a loan modification that you need.
The primary purpose of a loan modification is to help the borrower get back on track when it comes to the mortgage installments. A co-borrower is added to the loan if the primary borrower’s income and assets aren’t enough to make him or her qualify for a loan in the first place. So in case you are falling behind on your mortgage payments and want to look for loan modification options, there are some things to consider if you had a co-borrower on the loan. So if you are seeking loan modification consulting, you can try reaching out to Loan Modification Depot for help.
How does it work?
As mentioned above, a co-borrower is at times added to a loan for qualification purposes. There are also times when married couples taking joint ownership of a property sign the mortgage documents together. In case any of these borrowers fall short of making their regular monthly payments, they can try to get some loan modification help. It is one of the options to help stop a foreclosure by making the payment terms easier for the borrower. In case you are applying for a loan modification and had a co-borrower also sign the documents during the application process, it is necessary to have him or her in loop during the process. If the co-borrower doesn’t agree with the terms, the process will be stalled.
If a married couple files for divorce and one of them is awarded the house, then he or she would be able to apply for a loan modification without the ex-spouse. However, the person who has the property should qualify for a loan modification without a co-borrower. In that case, the former spouse would be released of all liabilities related to the mortgage and wouldn’t need to sign the new documents.
Loan modification is not an easy or quick process. It needs some good negotiation skills, and hence it is advisable that you hire a reputed firm like Loan Modification Depot to lead the process. This would increase your chances of succeeding.
The danger of a looming foreclosure is a nerve racking experience for families. It becomes trickier when children are involved, especially young children who might not be able to understand what is going on. Not only does the family’s financial stability get affected, even the children’s future is put in jeopardy. There are a few special foreclosure defense programs to help families tide over the crisis. The US government has introduced a number of loan modification options as well as refinancing options that can help families stop a foreclosure. A family would of course need to meet some requirements before availing a loan modification service. Reputable firms like Loan Modification Depot, which have a good track record can help such families stop an impending foreclosure.
You might be up to date on your payments, but can foresee some financial troubles in the near future. In such a scenario, you can try to get your loan refinanced via the government’s MHA (Making Home Affordable) scheme. However, you need to read the fine print carefully and also see what your final liabilities would be once you get your loan refinanced.
Loan Modification Help
If you have already fallen behind on your mortgage payments, due to factors like unemployment, medical emergency, or a divorce, you can try checking your eligibility for loan modification help via the government’s MHA scheme. Get in touch with your lender to see if they are willing to modify your loan to make it easier for you to pay the monthly instalments. This can be done by reducing the interest rates, extending the loan repayment period or scaling down the principal on the loan. Loan Modification Depot can help you in this process.
You can also ask for additional time from the court for your children to finish school, or to look for solutions to your existing financial problems. This however depends on how you argue your case and the laws of the state you reside in.
In spite of our best planning, we might still come face to face with monetary issues. The situation becomes trickier when you are also paying monthly mortgage instalments. In case you are to miss some instalments in a row, you can end up with a default notice followed by a foreclosure. However, this is not the end of the world as there are ways to stop foreclosure and reduce your monthly payments. For this, it is highly advisable that you enlist the services of a loan modification firm. Such organizations can provide you with the right loan modification consulting to straighten out your finances and also save your home. One such reputable firm is Loan Modification Depot.
Stopping a foreclosure
There are a number of ways to stop a foreclosure, which will allow you some time to improve your financial situation and save your credit rating. Some of the popular options are negotiation with the lender, short sale, and forbearance. As a leading loan modification specialist, Loan Modification Depot has the right professionals on board who are up to date on the latest legal procedures to stall a foreclosure. They can tell you which option will be best suited for your financial situation.
Lowering monthly mortgage payments
A modified loan can be very helpful in improving your financial stability. If you are eligible for loan modification, you can engage Loan Modification Depot to negotiate on your behalf. Hiring a loan modification lawyer or firm would give you an edge on two counts. Firstly, they would have the right experience to argue your case, and secondly, the loan service provider would be more attentive to what a legal counsel would have to suggest.
Once you hire Loan Modification Depot, they can take the lead on the proceedings, thus giving you time to think about how to fix your financial troubles. Hence, you have a much better chance at creating a more stable financial future for you and your family.
Various forms of stress relief options are available for families in distressed provided they qualify for the option being offered. There are several criteria that are considered for making an individual qualify for mortgage and foreclosure relief options. If you wish to know whether you qualify for the process or not, then you need to seek help from qualified loan modification professional. loanmoddepot.com offers quality loan modification services.
Have you lost your home to foreclosure?
If you have already lost your property to foreclosure and if you owe payments towards mortgage, then you would be entitled to potential cash benefits provided you qualify. There are several criteria governing the qualification for the benefits and you can gain a deeper insight by getting in touch with loan modification firm that offers advice on such cases. You can always rely on quality services offered by loanmoddepot.com for assistance.
Qualifying for foreclosure relief options
If you wish to avoid foreclosure, then you need to make modifications in your loan terms if your lender agrees to do so. You will have to discuss your problems with a loan modification expert before proceeding. Modification options would help relieve you of the burden that you may be facing while making payments towards your mortgage. Government bodies do offer loan modification programs and you need to find out for which program do you qualify in order to avoid foreclosure.
The home affordable modification plan is quite popular and it offers relief to ailing home owners. In order to qualify for the program, there is a need to prove your financial hardship which is significantly impacting your ability to make loan payments. If you are facing foreclosure or if you are lagging behind payments, then you can apply for a modification process which can put a temporary halt on the entire process.