AVOIDING FORECLOSURE IN WASHINGTON
Many Washington homeowners are in over their heads with unaffordable payments and overwhelmed trying to avoid foreclosure. However, a number of them find that avoiding foreclosure while obtaining a more affordable loan is easier than they think. As reported in the media, Under the Obama administration's new regulations, the government will now subsidize the cost of lowering a homeowner's interest rate in order to maintain their payment to no more than 31 percent of their income. [NY Times, 3/5/2009]
"The government will also help subsidize the cost of lowering the borrower's interest rate so that payments are no more than 31 percent of their income. A loan can be modified only once under the program, and borrowers must prove they have a financial hardship." [WA Post, 3/5/2009]
Loan modification has become the best option for homeowners facing foreclosure, because loan modification allows for permanent changes to be made to the loan, allowing for more affordable payments. In doing so, Washington homeowners are able to avoid foreclosure and keep their family home.
Nearly everly Washington homeowner now qualify for hundreds of dollars in monthly savings with a loan modification under the Obama administration's "Making Home Affordable" plan. Thanks to the HAMP program, a homeowner's mortgage payment cannot exceed 31% of their gross income, and because most home loans exceed 31%, the majority of borrowers are eligible for assistance. Washington homeowners facing foreclosure, or about to be, should immediately begin exploring all the options available to them.
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