In this economy it isnt that difficult to find oneself out of work with a mortgage that still needs to be paid. Many Americans are facing layoffs, downsizing, and salary modifications that make paying bills a stressful and sometimes frightening experience. With a floundering economy and swimming home loans it is little wonder that families are defaulting on mortgages and foreclosures are on the rise. There is some good news on the horizon. Recent changes to the Obama Administrations home loan modification bill has provided the means for as many as four million Americans to restructure their home loans.
The program now requires that all participating lenders to reduce the borrower’s monthly payments to a figure that is no greater than thirty eight percent of the borrower’s gross monthly income. As an incentive towards lenders, the government will assist in bringing payments down to a figure not greater than thirty-one percent of the gross monthly income by contributing to the monthly payment.
As futher incentive, lenders will receive $ 1000 for each granted modification and an additional $ 1000 each year for up to three years as long as the borrower continues to make payments according to the modification. Borrowers can get up to $ 5000 knocked off the principle of their loan should they make timely consistent payments for up to five years.
What does all this mean for worried homeowners?
It means that their financial institutions have a carrot thrust before them and the homeowner’s ability to receive a loan modification is highly likely given all the inducements. It means that the homeowner can see their payments drop considerably, and with consistent payments to the servicer will see a cut in their principle during the lifetime of their loan. It means that Texas loan modifications are within reach.
If you are living in Texas, and are late in your payments, in default, or even in foreclosure there are still options available to you should you choose to stay in your current domicile. Request the Texas loan modification paperwork from your lender if you have not already received it in the mail. You will need to demonstrate both financial hardship and the ability to make the modified payment. Your hardship letter will be the most important piece of the package that you submit so you will want to begin drafting the correspondence as soon as possible. Utilize free resources such as those available from HUD in order to better familiarize yourself with the process. Remember that the lender has no desire to foreclose at this time and will attempt to work with you to keep your loan afloat.
(C) Copyright, Nu Home Source Realty LLC. All rights reserved