Mortgage Modification Program – Solution For Returning Military Guardsmen And Reservists

Have you just returned from active duty in our military to find your mortgage payments behind and your home facing foreclosure? The absence of your regular job’s paycheck has probably been quite a financial strain for you and your family, on top of the already difficult sacrifices you all have had to make while you were on active duty. President Obama’s Mortgage Modification Program has 75 billion dollars set aside to rescue homeowners like you who have faced financial hardship due to events beyond their control. Military duty, job loss, divorce, death of a spouse, illness, and medical bills are all good examples of hardship.

The program provides incentives to lenders to rework loans to reduce the monthly payment to an affordable amount that will allow the struggling homeowners to stay in their homes. The target amount for payments is less than 31% of the borrower’s gross monthly income. This payment includes insurance, taxes, and any homeowner dues. This is accomplished by any or all of the following methods: reducing the interest rate, extending the term of the loan, waiving late fees, and even forgiving principal. The borrower is paid one thousand dollars each year for the first five years as an incentive to remain current. At the end of the five years, the interest rate may adjust slightly at no more than 1% per year to reach the current interest rate at the time the loan modification is written.

This mortgage modification may be just what you need to save your home, and you probably already meet the hardship requirement. What other guidelines for qualification are there?

• The home must be your primary residence. Of course, you may have been recently living in a tent in the desert, but this must be the place you call home, not a vacation home.

• The original loan must have been signed on or before January 1, 2009.

• The loan amount cannot be more than $729,750.

• You lender must be on the approved lender list.

• Your current payment must be MORE than 31% of your gross monthly income. This payment again includes taxes, insurance, and any dues.

• You need to be able to show documentation of change in income and expenses that caused the difficulty paying your mortgage. You also need to be able to make a case that you will be quite able to afford the new payment obtained under the Mortgage Modification.

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