You may have fallen behind on your mortgage payments and be facing foreclosure. Obama’s Home Stimulus Package has funds allocated to provide fast help to struggling homeowners.
275 billion dollars has been earmarked to stimulate the housing market and stop the increasing number of foreclosures by helping homeowners obtain lower monthly payments and stay in their homes.
How will this be done? House payments (counting insurance, taxes, and homeowner’s dues) will be adjusted to no more than 31% of a homeowner’s gross monthly income through loan modifications.
This will be done using any or all of the following tools until the desired payment is achieved:
• A lower interest rate, possibly as low as 2%.
• Extension of the length of the loan to as long as 40 years.
• Waiver of late fees
• Reduction of principal
You must qualify in order to apply. The following guidelines will help you determine if you might be able to obtain fast help through Obama’s Home Stimulus Package:
• Your home must be your primary residence, where you live more than half of the time.
• The original loan has to be dated on or before January 1, 2009.
• The loan amount has to be no more than $729,250.
• Your payment, including taxes, insurance, and any homeowners association dues, must be more than 31% of your total gross monthly income.
• You must be in a state of financial hardship. This means that your mortgage payment is either in arrears or will soon be due to events beyond your control. This could include: job loss, death of a spouse, medical bills, or an adjustable rate mortgage that jumped way above what you expected. You must be able to document this situation and also present how your income could reliably sustain the new, modified house payment.
The stimulus package loan modifications are only available for a limited window of time, and if you are facing foreclosure, you definitely need to act quickly.
For more information please visit: http://www.floridalawattorney.com
