The new dwelling plan announced by President Obama last week has two main parts.  Beforehand, there is a $75 billion loan modification plan and, second, there is a program that helps borrowers who are not in risk of defaulting refinance their mortgage.  

These are some of the key questions to ask to end if you can benefit from the plan:

Do I have to fall behind on my loan payments to be single for a loan modification?
No.  Borrowers must simply demonstrate that they are in hazard of falling behind on their mortgage and that they don’t have adequate income to make future mortgage payments.  Borrowers with ballooning mortgage payments or concern rates that are resetting may benefit from the new plan.

What are the allowance modification requirements?
To be eligible for modification under the plan, the loan sine qua non be a first mortgage on the borrower’s primary residence.  Borrowers must currently be paying more than 31% of their monthly whole income toward mortgage payments. Jumbo loans that top Fannie or Freddie loan limits are not eligible. Ultimately, your eligibility intention be determined by your mortgage lender.

What if I am “under water” and my mortgage is more than the value of my belongings?

As long as the amount owed on a first mortgage does not exceed 105% of the living quarters’s current value, borrowers with limited equity can refinance into a 30-year or 15-year fastened-rate mortgage.  This refinance option is open to only to borrowers with conforming loans that are owned or guaranteed by Fannie Mae or Freddie Mac.  Borrowers be required to show that they are current on mortgage payments and that they disposition be able to meet the new mortgage payments.

How do I know if my mortgage is owned or guaranteed by Fannie or Freddie?
The Drained House will release full eligibility details on March 4, when the program begins, and it is recommended that borrowers friend their lender at that time to see if their mortgage is owned or guaranteed by Fannie or Freddie.

Does my lender Possess to participate in the program?
No. Participation by lenders is voluntary, but the government provides subsidies to inspire lenders to modify loans. For example, mortgage servicers receive $1,000 for each advance modification and can also get another $1,000 annually for three years if the borrower stays modis on the loan.

To learn more about loan modification options, stop www.loanmodificationhelpcenter.org