Mortgage Bailout Obama - The Home Modification Program Affordable (Hamp) and What does this mean for you

Obama The mortgage modification / rescue plan is known as Hampi, has a small number of relatively simple criteria can potentially get a change to satisfy the mortgage and lower your mortgage payments should be fair.

First, there is the debt to income (DTI) ratio. The magic number is 38%, such as your DTI should be equal to or less than this percentage. Just take all of your monthly mortgage debts, and this debt is the mortgage payment, monthly propertyTaxes, insurance and household expenses, and then divide the number in his family's monthly gross income. The resulting percentage should be 38% or less.

For example, if the mortgage and related costs $ 2,000 a month, and your gross household income is $ 5,500, then you have a 2000/5500 and 36.3% of the DTI, which is as good as it is below the maximum of 38% and can go to the next qualifying factor. Something else must know that if you get a loan Hamp changes, the change will actually reduce the DTI to 31% by a reduction in your interest rate and / or extend the loan term to 40 years. In some rare cases, a reduction of the principle of balance will be done.

The next criterion is that you need to live at home (this is "owner occupied" as mentioned). You can not live in a house and try to get a loan under the program of change for real estate as an investment or a second> Home.

Another criterion is to experience a kind of financial difficulties that can not go together financially and decide on a lower mortgage payment would be like "just because" receive and consider a loan modification. That's not how the application runs without a valid financial hardship is denied.

An easy to meet the criteria for many homeowners, the amount of the loan is equal to or less than $ 729,750 must.

The lastHampi is the most important criterion for most homeowners and that is to make the loan must come before January 1, 2009.

Well, here's the real kicker, even though they know fairly simple guidelines to understand and fulfill are, and even though most owners may qualify, we're still seeing the banks refuse a loan modification for people who should be considered. Some banks have refused to work for the Obama-aid program, while others simply stall,You lose the card, and provide customer service terrible that homeowners frustrated and give up.

This goes back to a previous article I wrote you that you know that this is something you can do. You have to be directly with the bank and not all pain from them. They can keep a record of every phone call to make and what the bank during this call. If the writer does not give you the answers you have to do to your questions on a trainManager and, if necessary, send complaints invalid (signature required) to senior bank management with a "CC" and copied to the FTC, FDIC, the Treasury Department / Office of the Comptroller of the Currency (Treasury / OCC) and your state Attorney General. Your attitude must be what you want to get this done, to stay in your home.

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