Obama Refinance Plan Qualifications: Obama Loan Modification Consumer Protection
Go to: Previous Article Next Article
Homeowners who are facing foreclosure or are struggling for help refinancing or modifying their home mortgage and looking to take advantage of President Obamas "Home Affordability Plan" mortgage stimulus, may be confused about which part of they plan they qualify for. Here is some help.
With so many announcements from the news and government themselves about the stimulus bailout and how homeowners can save a lot of money by refinancing a lot of homeowners ask themselves where to start. Here is some helpful information to get you on your way. The Fannie Mae and Freddie Mac SMP (Streamlined modification program) is a home loan modification option for homeowners who have a mortgage owned or insured by Freddie Mac or Fannie Mae. This mainly applies to conforming loans and will reduce the monthly mortgage payments to no greater than 38% of the homeowners gross monthly income. Interest rates will be lowered to as little as 3% in order to achieve this goal as is extending the length of the loan. However, there are some minimal Obama refinance plan qualifications that must be met in order to take this route that you can learn more about.
Fair Lending: Modifications under the plan must abide by the Equal Credit Opportunity Act and the Fair Housing Act, both of which do not allow discrimination on a prohibited basis connecting to mortgage transactions. Loan modification plans are subject to fair lending laws, and both servicers and lenders should make sure debtors are being treated equally when it comes to mortgage modification.
Qualified homeowners can apply for loan modification programs or refinancing options through their lender, or any lender or bank, in order to lower their monthly mortgage payment. This can be done through lower interest rates, a longer loan term. Forbearing the principal, or a combination of all three of these things. Each mortgage lender and bank have eligibility requirements for each type of home loan refinance or modification. Learn the lenders requirements in order to better your chance of being approved.
Mortgages through either of the lending giants Fannie Mae or Freddie Mac are automatically eligible to get a home loan modification, regardless of the reason it is needed. Homeowners who are not really struggling can still use this part of the plan to save a lot of money. With so many homeowners facing problems, and foreclosure and mortgage default at all time highs, this plan will help millions. A home is most likely the most expensive thing you will ever own. Make sure you take the right steps to protect it from being lost.
Article Source: Articlelogy.com
Insurance Comparison Quotes - Selected Insurance Carriers eager to quote you a price, fast!-
Word Count: 449
Reduce Your Debts Without Bankruptcy. See How Much You Can Save. Free Debt Analysis
