Housing Relief – Loan Modification Help Is Here
A new loan modification program was just unveiled that may help thousands of homeowners, that are facing foreclosure. The loan modification program is the latest attempt by the federal government to stabilize the real estate market. Thr program will not provide direct financial help, but it does provide assistance to those at risk of losing their homes.
The program will benefit borrowers who are at least 3 months behind on their mortgage payments, if they live in the home and have not filed for bankruptcy.
Borrower’s who fit the criteria would be offered a mortgage loan that would bring the payment to no more than 38 percent of their monthly household income. Loan payments would be adjusted downward through interest rate cuts and longer terms of repayment. Borrower’s would be allowed up to 40 years to repay the debt versus the traditional 30 year mortgage most of us are familiar with.
Borrower’s who are in danger of foreclosure should immediately contact the lender who services their loan. The loan modification program was designed to be swift and efficient in stopping foreclosures. It is expected that 1.6 million Americans will lose their homes this year, and another 1.9 million are projected to lose their homes in 2009.
Efforts by the government to work with borrowers and homeowners and keep them in their homes is good news for neighborhoods and communities. The program is also good news for lenders and taxpayers as foreclosures typically cost the lender 50 percent of the loan value. Ouch!
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