MORTGAGE MODIFICATION HELP WASHINGTON
Most Washington homeowners are currently surfing through their options during the mounting mortgage crisis and current economic troubles. Amidst the fears and uncertainties, homeowners are most frequently going to come across the possibility of a home loan modification. A mortgage modification program allows a borrower’s home loan to be adjusted to new binding terms, and commonly include:
- Lowered interest rates;
- Reduced principle balance;
- Swapping adjustable rates to lower fixed-rates;
- Altering the term of the loan;
- Forgiveness of payment defaults and fees;
- Or a combination of these.
The government has allocated $75 billion to subsidize some payment reduction, in addition to providing thousands of dollars in incentives for servicers and borrowers to participate. These incentives aim at helping stimulate the foreclosure-prevention business, ultimately saving the homes of millions of Americans and providing some stability for the current crisis.
Three of the nation’s largest banks are included in the participants of President Obama’s mortgage rescue plan. JP Morgan Chase, Wells Fargo and Citigroup (CitiMortgage) began processing modifications under the government initiative in April.
“We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership,” Wells Fargo noted in a statement. [CNN, 4/16/09]
Loan Modification is the fastest growing industry in America right now, and this is because it may just be the best alternative to foreclosure. More importantly, mortgage modification has now been mandated by the Government. Servicers are now called to reduce interest rates so that the homeowner’s monthly obligation is no more than 31% of their gross income. Because most borrowers are paying more than this, the majority of homeowners now qualify for hundreds in monthly savings.
Those seeking to do a modification on their own will unfortunately fail about 8 out of 10 times, as the intense process and negotiation skills commonly require competent legal representation. Homeowners looking to modify their mortgage should be certain to find a company that works with a professional legal team or law firm on their case. In these times of scrupulous business practices and loan scams abound it is more important now than ever to assure you have professional legal advice on your side.
By simply filling out a free loan modification evaluation, homeowners can immediately see the savings now available to them under various new government programs, and start the process of determining which government plans and savings you best qualify for.
Under President Obama's "Making Home Affordable" plan, Washington homeowners can save hundreds a month by getting a home loan modification or mortgage refinance. All distressed homeowners now facing foreclosure, and those who are about to be, should immediately start exploring all the options available to them, including the new government programs designed to help you get a successful loan modification.