The housing bailout is it for you? – Help Center loan modification

The new housing plan announced by President Obama last week has two main parts. First, there is a plan to change the $ 75 billion loan and, second, there is a program to help borrowers who are not in danger failure of the refinance their mortgage.

These are some key questions to ask whether you can benefit from the plan:

Do I have to fall behind on my loan payments be authorized for a loan modification?
Number Borrowers must simply demonstrate that they are in danger of falling behind on their mortgage and they put ‘t have enough income to make future mortgage payments. Borrowers with mortgage payments and final or fixed interest rates back to zero which can benefit the new plan.

What are the conditions for loan modification?
To be entitled to change under the plan, the loan must be a mortgage on the borrower the ‘primary residence s. The borrowers must now pay more than 31% of their gross monthly income toward mortgage payments . The huge loans exceed the limits of Fannie and Freddie loans are not eligible. Finally, your acceptance will be determined by your mortgage company.

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

Until the amount owed on a mortgage does not exceed 105% of the house of ’s current value, borrowers with limited equity can refinance a loan in 30 years or 15 years. This refinance option is open only to borrowers with loans of conformation that are owned or guaranteed by Fannie Mae or Freddie Mac. Borrowers must demonstrate they are current on mortgage payments and they can meet the new mortgage payments.

How do I know if my mortgage is owned or guaranteed by Fannie or Freddie?
The White House will release full details of acceptability March 4, when the program starts, and he recommends that borrowers contact their lender at that time to see if their mortgage is owned or guaranteed by Fannie or Freddie.

My lender must participate in the program?
The number of lenders is voluntary, but the government provides subsidies to encourage lenders to modify loans. For example, mortgage servicers receive $ 1,000 for each loan modification and they can also get another $ 1000 annually for three years if the borrower remains current on the loan.