Editor’s note: This guest article contributed by Mark Tye
BACK IN 2009 in an attempt to help an estimated 9 million families stranded in deep water with no help in sight, President Obama authorized $75 billion bucks into the “please help me” pool, and designated it a mortgage relief plan. Would this money life preserver save every homeowner? Would it turn the tide of the massive foreclosure wave that hit the country? It helped, but it acted more as a band aid than a cure.
What was this “money pot” supposed to really do? The answer is simple enough. Help hard hit states like Arizona, Nevada, and other desperate states stem the tide of foreclosures and stop or at least temporarily halt a widening recession. Headlining this Obama $75 million dollar loan modification program was an initiative that provided incentives to mortgage lenders to convince them that taking advantage of this loan modification opportunity might be able to save millions of homeowners who are on the verge of foreclosure – even bankruptcy.
Many borrowers were confused on how loan modifications worked as it applied to them. Basically, the Obama loan modification program was a process that helps you restructure your current loan terms to make them more affordable to you. An example of how a loan modification works can be easily explained this way. You have a current loan amount of $255,000. Your monthly PITI payment before any loan modifications is $2,108.47. Your monthly payment after using the Obama loan modification would be, $1,669.00. Big differenceTo apply for the Obama loan modification you’ll have to jump over a few hurdles to see if you’re eligible.** Go online. Visit a mortgage lender to verify eligibility for the loan modification program** Apply for a loan modification. Remember to negotiate with your lender
** When applying for a Obama loan modification, there should be no credit check for an inquiry; no obligation
** Who is eligible? Help may be available for loan modifications if you are about to miss several mortgage payments,you are nearing or already in foreclosure, you’re a homeowner thinking about a short sale, the sheriff has already nailed a sale notice on your front door, your current lender doesn’t answer your phone calls or emails or heads for the coffee room when you enter his office building. These are urgent times. People need urgent help, not a promise. Maybe a loan modification is your life jacket.
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