For some homeowners who are facing 8% and greater, 2% is an amazing interest rate, and will guarantee that these homeowners have an interest rate low enough that their monthly mortgage payments will be more than manageable and finally allow homeowners to save their homes from foreclosure.

Qualifying For a Government Loan Modification

The qualifications for the new Government program are as follows:

- You need to report a documented “financial hardship” with the bank providing tax stubs, pay stubs and all necessary documentation to prove you are out of money
- You must have a Fannie Mae or Freddie Mac mortgage or be eligible for support

Loan Modification Benefits

Through this Government program, the loan modifications can help homeowners reduce their payments by dropping interest rates to as low as 2% and by extending mortgage length by up to 40 years, making manageable payments a real reality for homeowners.

Government help will come in from Fannie Mae and Freddie Mac by helping homeowners to refinance their mortgages and to allow banks to modify loans for homeowners.

Fannie & Freddie To Help 90,000 Homeowners

Fannie Mae & Freddie Mac have sent out 90,000 letters to homeowners who have missed at least 3 payments on their mortgage inviting them to participate in the “streamlined loan modification program” which was launched in November and designed to make the loan modification process much much easier for homeowners.

The existing loan-modification program is designed to reduce a borrower’s monthly payment to 38 percent of salary by reducing interest rates, extending repayment terms and, in some cases, reducing the outstanding principal.

Loan Modification Help

For many homeowners who have not received this letter, there is help available. Loan modifications are available to homeowners who meet any of the following qualifications:

- Interest rates above 8%
- You owe more on your home than it’s worth
- You You have an adjustable rate mortgage
- Your mortgage is in default

To get help with a loan modification, please click here to get free advice and help from our experts.

Florida Bars Upfront Loan Mod Fees

Loan modifications are available for homeowners who have impossible to pay mortgage payments, and as a result a loan modification reduces interest rates, drops monthly payments, and allows homeowners to stay in their homes.

The Orlando firm, Financial Management Advisors charges fees as high as $2,500 to homeowners seeking loan modification services. With the recent passing of the Foreclosure Fraud Prevention Act, companies are required to provide a written agreement for loan modification services and are prohibited from charging an up-front fee for their services.

The Foreclosure Fraud Rescue Prevention Act, Florida Statutes 501.1377, protects homeowners who are in foreclosure or nearing foreclosure from companies offering potentially fraudulent foreclosure “rescue” services. Specifically, the statute governs companies providing foreclosure-related rescue services including loan modification and short sale services. These companies are prohibited from charging homeowners an up-front fee for these services and must provide homeowners with a written agreement. The law was one of the Attorney General’s legislative priorities during the 2008 Legislative Session.

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With the huge drop in housing prices, and homeowners adjustable rate mortgages resetting, interest rates are creating hugely onerous mortgage payments for homeowners, and making staying current nearly impossible.

Refinance 5 Million Freddie Mac & Fannie Mae Mortgages

There are 3 components to the Obama plan, the first of which is to take 5 million mortgages held by FAnnie and Freddie and refinance them to manageable rates.

The two banks, since they are now owned by the Federal Government will take these loans and refinance them, and absorb any losses into the overall Government.

$75 Billion Homeowner Stability Initiative

The second portion of the plan will be used to reduce the monthly mortgage payments that families with Fannie Mae and Freddie Mac have. The $75 billion will be put into loan modifications that will allow homeowners to adjust their mortgage, drastically reducing mortgage monthly payments, down to a realistic level.

Federal Housing Administration Modified Only 25 Loans

One of the main reasons for this new plan is that the old plan, Hope for Homeowners, which planned to modify 400,000 mortgages has only been able to modify 25 loans which is absolutely pitiful.

The Homeowner Affordability and Stability Plan would directly incentivize mortgage modifications by paying $1,000 for each eligible modification. Lenders would also be eligible for monthly fees of up to $1,000 per year, as long as a modified loan borrower stays current.

Also, unlike previous mortgage modification efforts, this plan is not completely voluntary. Any financial institution that receives capital from the second round of funding under the Troubled Assets Relief Program would be required to participate in the new programs and implement stronger loan modification guidelines.

When a bank faces the possibility of a home either having the loan modified or going into foreclosure, it can cost the bank up to $40,000 to $50,000 if that home goes into foreclosure.

This is a huge cost, and something banks want to avoid as much as possible.

So if you are considering a loan modification or are currently negotiating with the bank, remember that it is going to cost them up to $50,000 if your home forecloses, and use that as leverage when negotiating for the best rate for your loan modification.

For many, they assumed the Obama Housing Plan would have come to the aid of Boca Raton homeowners, but unfortunately that isn’t the case. The Obama plan was setup to have all loans owned by Fannie Mae and Freddie Mac to absorb the bad mortgages, and provide a padding against losses, allowing lenders to modify mortgages and save homeowners.

For many homeowners, getting to the point where they could face foreclosure is not a result of negligence, greed, or ignorance, actually, it’s a combination of factors well outside of any rational person’s thinking.

2 years ago who could have predicted the Dow Jones would be below 7500 and the house would be worth half the value it was only 2 years prior. For many homeowners, this is their exact circumstances.

Their wages have been cut, making even manageable mortgage payments seem impossible, and for those with adjustable rate mortgages, their mortgages are doubling, making it impossible to stay in their homes.

For homeowners seeking help, we have been serving families like yours for more than 25 years and are specialized to assist Boca Raton homeowners with loan modifications.

Please give us a call for a free consultation, and see if we can help you with a Boca Raton loan modification.

The Boca Raton area was an icon of the Housing Boom, but now, due to the Recession, subprime mortgages, the area has been ravaged by extremely high interest rates, and homeowners are seeking refuge from the foreclosure crisis.

If you have seen your mortgage payments more than double, owe more on your house than it’s worth, have interest rates above 8% (or have an ARM), then you are an excellent candidate for a loan modification.

A loan modification or mortgage modification is designed to create manageable monthly payments and allow a homeowner to continue to make payments, avoid defaulting, and save your home from foreclosure.

For more information on how foreclosures work, read our frequently asked questions or if you’re ready, click here for a free consultation with one of our lawyers.

If you have skyrocketing mortgage payments and facing the possibility of defaulting or are already behind on your mortgage, you need to get help as soon as possible. A home modification mortgage is one of the best ways to save your home from foreclosure.

A loan modification is granted if your mortgage payments make it impossible for you to stay current on your loan, and are a means for your lender to prevent having to foreclosure on your property.

Home Modification Qualifications

The typical qualifications for a home modification are any of the following:

• A material impact on your finances: loss of job, serious illness, etc.
• An interest rate that is 8% or above or an ARM (adjustable rate mortgage) that is set to adjust soon, which could double your payments
• A homeowner who is behind or in default on their home. The loan modification process can halt foreclosure proceedings, saving your home
• If you owe more on your home than it’s worth, due to declining home prices

If any of the above situations apply to you, you are an excellent candidate for a home modification and have a 90% chance or above of receiving a loan modification.

We have been serving homeowners for more than 25 years and can assist you with a home modification or are available for free counseling just click here to get started.