What's All This About Mortgage Loan Modification Plans?

The Government has now come up with two plans to help people who have missed payments on their mortgage and are struggling. In this article i wish to introduce you to the one that is called a Loan Modification plan. To qualify, you need to meet the following criteria:-

- Your original mortgage loan cannot be greater than $729,000

- Your mortgage must have completed prior to January 1st 2009

- You will be required to provide proof of your income and expenditure, through payslips, tax returns and bank statements

- If your total debts are in excess of 55% of your income, you have to agree to visit credit counselling

- Finally, you must be living in the mortgaged property and will be required to write a letter in your own handwriting stating that you are in financial hardship

So what can your lender do for you in this situation?

- They can lower your monthly repayments to approximately a third of your monthly income.

- Interest has been known to be dropped to as low as 2%.

- You don't need to pay any fees for the modification as these are covered by the government

- The government are able to reduce your balance by up to $5000 over 5 years as long as you make your payments on time

- Your rate is reduced for the period of 5 years, so you may have to pay more after this period

- You are only ever allowed one modification

Loan Modification Companies have been reported to charge anywhere from $1500 - $5000 to help you with this process. If you don't have that kind of "spare" cash lying around, you will need to complete a "Do-It-Yourself" Loan Modification.

Click Here for More Info On The Do-It-Yourself Loan Modification Kit