If you are having trouble paying your mortgage payments, or if mortgage takes up more than half of your income, or if you have been struggling hard to meet your mortgage needs then there is a solution for you. You can become eligible for the two percent mortgage modification programs that have been put up by the government under the Economic Recovery Act. Mr. Obama has come up with a legislation that can help all such distressed people and allow them to have lower mortgage payment rates which are affordable and can avoid early foreclosure.
Simply put his plan can help you to modify your mortgage terms, so keep in line your monthly payment of mortgage and your income so that it can become more affordable for you.
Certain points which need to be kept in mind regarding this modification plan are listed below.
Eligible people for this plan.
The government has set aside certain guidelines for people who can qualify for this plan in their agenda. The first important criterion that needs to be met is that the property on which you are paying the mortgage should be owned by you and you should be residing there. It cannot by any means be your vacation home or rental property. The second most obvious and important criterion is that your mortgage payment per month should be 31% or higher than your current gross monthly income for you to be eligible to avail this plan.
The main processor who handles this modification program.
The government has sponsored this program which will allow the lenders to make the mortgage modifications. So accordingly each individual lender will approve and process the loan modification process.
Applying for the mortgage modification plan.
If the criterion mentioned above is fulfilled, then you can approach your lender for the loan modification program. He will then guide you along for the required paperwork. You can then think about the further details and put this plan in action.
Terms for this modification.
Typically the lenders have limited the interest on the mortgage to 2% and have extended the mortgage payment period even further to lessen your burden a bit.
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