In these tough economic times, making your mortgage payment may become increasingly difficult. In the past, a refinance of your current mortgage would have been a quick fix. But now that many people owe more than their house is worth, homeowners are left feeling helpless. In order to buoy our floundering housing market, the government has created the “Making Home Affordable” program to encourage lenders to renegotiate the terms of your loan. Lenders are encouraged to participate, as they would rather you keep your house (even if they collect less interest) than have to go through the efforts and costs to foreclose, refurbish and remarket the property. If you can answer “yes” to the following questions, you may be eligible for a loan modification:
• Is the home your primary residence?
• Do you owe less than $729,750 on your first mortgage?
• Have you missed any mortgage payments or feel you may start missing payments?
• Did you obtain your mortgage before Jan. 1, 2009?
• Is your payment on your first mortgage (including principal, interest, taxes and insurance) greater than 31 percent of your current gross income?
You can contact your loan servicer (the company you pay each month) to get started or visit http://www.makinghomeaffordable.com for more information. Once your lender receives your modification application and necessary financial documents, they will review your situation (be patient, it can take several weeks) and, if you qualify, offer you a modification. Once qualified, you will enter the trial modification period and will be required to make three monthly payments at the new amount. These payments are due at the first of each month – no exceptions. (Don’t lose your modification over a technicality). Once all trial payments are made and the bank has received all necessary financial documentation, your loan will officially be modified. All closing costs are absorbed by the lender, and the new monthly payment will be fixed according to your new loan terms.
The Making Home Affordable program is free, and you should not pay anyone offering to help you with the process. If you have questions, contact your lender, call the program directly at (888) 995-HOPE or ask a trusted financial professional (like me!) to provide free guidance. Additionally, if you have recently been turned down for a modification, consider applying again. It certainly couldn’t hurt, and many lenders are widening their criteria in order to approve more applications. Remember, if you are experiencing financial hardship, the worst thing you can do is nothing.
_____
Erin Whiteside is a licensed mortgage loan originator with Fidelity Mortgage Services specializing in residential lending. Questions and comments may be directed to erin@erinwhiteside.com.
We are all already “Brite” Girls, “Brite” Women, “Brite” People. It is innate in all of us. However, the Brite Girl platform and community encourages women to continually grow in each area while making it fun and educational. We provide this to you through our networking events, educational speakers and workshops, our Brite Girl Magazine and our Brite Life coaching program. Most of life’s opportunities happen when you show up and we invite to do just that! Enjoy browsing our site for the “BRITE-est” news in Central Florida and beyond. Get connected, stay informed and continue to be sassy, classy and Brite!
Probably the most to the point and also current information and facts I recently found on this area. Sure lucky that I uncovered the webpage by chance. I’ll probably be subscribing to the feed in order that I can have the most recent updates. Appreciate the information here.