Santa Cruz CA Homeowners Can Avoid Foreclosure
One way you can avoid becoming a Santa Cruz Foreclosure. 
HAMP ... the Home Affordable Modification Program was created by the Obama administration to help as many as 4 million homeowners avoid Foreclosure. This number represents those homeowners that could be eligible to benefit from the program.
Simply stated, this is a Loan Modification program that will attempt to provide clear and concise guidelines to be adopted by all participating lenders. Up until now, Lenders were all over the map when it came to eligibility requirements, let alone finding any consistency in these requirements from lender to lender.
Do you qualify? A Borrower's eligibility is based on certain criteria that includes the following:
- Borrower must be delinquent on their mortgage payments.
- The property must be the Borrower's principal residence. Investment properties would not qualify.
- The Borrower's loan must have been made prior to January 1, 2009.
- The loan balance can not exceed $729,750.
If eligible ... what can you expect?
- The lender's goal will be to adjust the mortgage payments to an amount equal to 31% of the Borrower's monthly, pre-tax income.
In order to achieve this, the lender has a number of options; reduce the interest rate to as low as 2%, extend your loan term to a total of 40 years or they could defer a portion of the loan's principal until it is paid off witho
ut charging interest on the deferred amount.
If you think you qualify, call your lender to determine if they're participating in the HAMP program. Bear in mind, many lenders were already dabbling in this arena before the government got involved. Earlier I alluded to the problem borrower's were experiencing prior to HAMP. Lenders seemed to be developing policy on the fly ... and there was no consistency in policy or performance from one lender to the next.
Today's article highlights just one of the ways you can avoid becoming a Santa Cruz Foreclosure statistic. There are a number of other options available to Borrowers today. Don't hesitate to contact me to discuss your specific issue.
My goal is to be a Real Estate resource to all Homeowners, Home Buyers and Home Sellers in Santa Cruz County. I have over 23 years experience locally and regarded as an expert in all aspects of Residential Real Estate.
If you or someone you know would benefit from my services contact me at Santa Cruz Homes For Sale. I can also be reached at Mike@SellingSantaCruz.com or simply call at 831-818-5111.
Best regards,
MICHAEL WHITING
David Lyng Real Estate
www.SellingSantaCruz.com
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