Law Offices of Splittler, Read and associates, P.A.

Loan Modifications Programs Available for You Now

What is mortgage loan modification?

Mortgage loan modification is a change in an existing mortgage loan to make it more affordable to a homeowner at risk of foreclosure. Loan modifications usually result in lower monthly   mortgage payments.

Mortgage lenders often agree to modify a loan when they will lose less money modifying the loan
than by foreclosing on the house. The lender looks for the lowest-cost solution. Even though loan modifications help the homeowner, the benefits to the homeowner do not usually affect the decision of the lender.

What are the benefits of loan modifications?

Mortgage loan modifications change the terms of your mortgage to make your payments more
affordable. Lenders modify loans to prevent costly foreclosures. Homeowners benefit by getting to keep their houses.

Each bank or mortgage lender decides on eligibility rules and benefits for their loan modification programs.  Sometimes lenders negotiate on a case by case basis.

Common mortgage loan modifications are:

  • Decreasing the mortgage interest rate: A decrease in the mortgage interest rate lowers your monthly payments. The decrease can be temporary or permanent.
     
  • Forgiving part of the loan amount: The lender agrees to lower the total amount you owe on the loan, which reduces your monthly payments.
     
  • Deferring part of the loan amount: interest-free: The lender defers part of the principal for a period of time, and calculates your mortgage payments based on the remaining principal. This lowers your monthly payments temporarily.
     
  • Extend the loan : Giving you more time to pay off the loan: If you have a 30-year mortgage, the lender may extend it to 40 years. This lowers the monthly payments because you are paying off your loan for a longer period of time.

Lenders may also offer:

  • Foreclosure delay or moratorium: The lender delays the foreclosure sale
    to give you more time to work out a solution.
     
  • Forbearance: The lender allows you to stop or reduce your mortgage payments for a period of time.
     
  • Repayment plan : The lender gives you extra time to repay missed payments, usually by adding a portion of the debt to each regular
    monthly payment until you are caught up.

You May Qualify for Any One or Even More than One of These Loan Modification Programs:

Here are the Programs Available as of Early January 2009:

  1. Project Lifeline:

    Project Lifeline is a program that pauses foreclosures for 30 days to give lenders and
     homeowners time to work out an agreement. It is a joint project of the federal government and six mortgage loan servicers:
     
    Countrywide,
    Wells Fargo,
    CitiMortgage,
    Chase Home Finance,
    Washington Mutual, and Bank of America.
    J.P. Morgan

     Project Lifeline applies to all types of loans, including subprime, prime, Alt-A, and home equity loans.
  2. Fannie Mae and Freddie Mac foreclosure moratorium:
    The moratorium Lenders taking part in Project Lifeline send a letter to homeowners who are at least 90 days late in their mortgage payments. The lender agrees to postpone the foreclosure for 30 days  if the homeowner wants to keep the house. The homeowner must agree to get financial counseling  and to provide updated financial data.
  3. Streamlined Modification Plan (SMP)?
    The Streamlined Modification Plan (SMP) speeds up the process of modifying mortgage loans
     for homeowners at risk of foreclosure. The SMP is a program of the Federal Housing Finance Agency, Fannie Mae, Freddie Mac, and other participating lenders.
    The program is scheduled to begin on December 15, 2008.

    Under the plan, lenders modify mortgages so that the homeowner's mortgage payments are no more than 38% of the household's monthly gross income. Lenders choose how to modify the loans (reduce the interest rate, extend the number of years, etc.) to reach this goal.

    The Streamlined Modification Plan is for homeowners at risk of foreclosure who:
    • are at least 90 days late on their mortgage payments
    • have loans owned by Fannie Mae, Freddie Mac, or other participating lenders
    • own and occupy their homes as their principal residence
    • have not filed for bankruptcy
    • did not intentionally default on the loan so they could get a modification
    • can afford the modified payments

      To apply, eligible homeowners should call as soon as possible.
  4. Hope for Homeowners Plan

    On October 1, 2008 the U.S. Department of Housing and Urban Development (HUD) instituted the Hope for Homeowners Program under the FHA lender program.

    Designed to directly help those homeowners where:
    • Their mortgage exceeds the value of their home.
    • They are on an adjustable rate mortgage.
    • They have a high fixed interest rate.
    • They are behind, or in foreclosure.
    • May have income/job issues.

    The program effectively reduces the current mortgage (including second mortgages, late payments, attorney fees, and etc) to 90% of the homes. CURRENT market value based on a FHA approved appraisal. This can save tens of thousands in mortgage balance, and hundreds to thousands in mortgage payments.

    Credit scores are not included in the program. If you bought your house prior to 2008, you may qualify. Call Us Today.

To learn what program will benefit you the most call the office of John J. Spittler, Attorney at Law.

He has had over 20 years experience   in helping   people avoid foreclosure and keep their

Credit intact.

Call Today   305 860 9991

Or email    jjs@Spittlerlaw.com

 

Call Today

 

To learn what program will benefit you the most call the office of John J. Spittler, Attorney at Law.

He has had over 20 years experience   in helping   people avoid foreclosure and keep their

Credit intact.

Call Today   305 860 9991

Or email    jjs@Spittlerlaw.com

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