If you own San Clemente real estate, including Talega real estate, and are deliquent on your payments, you may qualify for a mortgage modification under the Obama administration's housing stabilization plan. According to the article on CNN "Mortgage modifications are happening. Get Yours", the following five simple steps are all you need to complete in order to stay in your San Clemente home or condo:
- Visit the website MakingHomeAffordable.gov where everything you need to get started is located
- Take the quiz to find out if you are eligible, meaning you bought your house before January 1, 2009, it is your primary residence, you owe less than $729,750, your payments are more than 31% of your monthly gross income, and you are deliquent on payments. If you qualify based on these requirements, an eight item checklist of paperwork will need to be completed.
- Complete all the required paperwork
- Call your lender or the company you write your monthly mortgage check to and find out if they are participating in the plan, and if they are, you will be required to fill out an application and submit your documents
- Wait for approval. During this stage the lender will decide how to reduce your debt by either lowing your interest rate, extending the term of the loan, or reducing the amount you owe. The lender will first bring your debt balance down to 38% of gross income and then the government will cover the rest by bringing it down to 31%. Your loan will now be rewritten, you will sign new paperwork, and the new payment will go into effect on the next bill. This can take several weeks to a month.
For more information on this program or about San Clemente real estate, please do not hesitate to contact us!
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