Don't Be Afraid to Ask for Help with Your Mortgage
If you are worried about foreclosure or just want to learn about your loan modification options, you need to know that President Obama recently announced two new programs aimed to help homeowners afford their home mortgage payments in the current economic crisis: The Making Home's Affordable Plan and Home Affordable Refinance Program.
The Law Office of Kathryn L. Johnson, PLC in Tucson understands how these federal loan modification and refinancing programs can help people like you stay in their homes and avoid foreclosure. Not only is Kathy Johnson an experienced attorney, she is also an Arizona and California real estate broker and mortgage broker. She can help you deal with your financial troubles whether your home is in California or Arizona.
Loan Modifications
The Making Homes Affordable Plan is a federal loan modification program. The program's main requirement is that the total principal, interest, taxes and insurance payment on your home must exceed 31 percent of your gross monthly income. That qualifies you as being in a hardship situation.
The home must also be your primary residence (this program does not apply to investment properties or vacation homes) and cannot be worth more than $759,750.
Lenders who participate in the program will require a hardship letter, your latest tax return and at least two paystubs per borrower to prove you have income sufficient to make your mortgage payments.
If you qualify, the lender will put you on a three month trial modification at a new interest rate and payment amount that will not exceed 31 percent of your income. If you timely make the payments and are current at the end of the trial period, the lender will execute a permanent modification agreement that will lower and fix the interest rate for a period of five years. At the end of five years, the rate may increase no more than one percentage point per year until it reaches the cap in the modification agreement.
For more answers ... go to http://www.financialstability.gov/maknghomeaffordable/
Refinancing
The Home Affordable Refinance program helps people with declining property values refinance their property into a fixed rate loan to obtain a reduced payment. The refinancing plan is offered on Fannie Mae or Freddie Mac loans on property occupied by a homeowner. The first mortgage cannot exceed 105 percent of the current value of the home. No cash out can be taken on a refinance loan done under this program. The applications will be accepted until June 2010.
For more information, go to: http://makinghomeaffordable.gov/refinance_eligibility.html
Your lender may also have other loan modification or forbearance programs that may also offer you help if you can't qualify for the new programs announced by President Obama.
Call 520-743-2257 or 888-326-7304 for Help
The Law Office of Kathryn L. Johnson, PLC is here to help you deal with your growing financial pressure associated with your home mortgage. Contact lawyer Kathy Johnson today to schedule a free consultation about your legal options.
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