Short Sale, Foreclosure and Strategic Default


Wednesday, March 4, 2009

President Obama new loan modification plan - Making Home Affordable

Obama's Making Home Affordable
Home Affordable Modifications

1. Loan modification can begin immediately

2. Owner occupant in 1-4 unit property, uppaid principle balance equal to $729,750. (for one unit)

3. Loan orginated before 2009

4. Have a mortgage payment that is above a 31% debt to income ratio. (debts are specifically defined to include - mortgage/loan payments, taxes, homeowner fees and insurance)

5. A change in income or expenses which make the old payment no longer affordable.

6. Borrowers can be CURRENT. A borrower does need to be at risk of imminent default and will be screened.

There is a trial modification period which borrowers must complete.

There is the possiblity for principle reduction.

There is also the possiblity of a pay off of $1000 to the junior loan.

For more information on the new home affordable loan modification plan

for more information on president obama's new loan modification plan

No comments: