Foreclosure Prevention. Loan Modification for homeowner. Charlotte NC

Foreclosure Prevention. Loan Modification for homeowner.

Foreclosure Prevention

Loan Modification Definition.

Loan modification is a process in which the lender works with the homeowner who is facing foreclosure or financial hardship and is having trouble making mortgage payment. The lender’s goal is to change the terms of the mortgage loan and make it affordable for the borrower.  The new terms for the loan will vary from lender to lender. Some of the changes could include: Temporary or permanent changes to the mortgage rate, term and monthly payments, the past due amount could be rolled into the loan, and the new balance re-amortized.

What to expect under President Obama’s  plan?

The main goal of the Loan Modification program under President Obama’s “Homeowner Affordability and Stability Plan” announced on February 18, 2009, is to reduce the monthly mortgage payments for homeowner struggling to make the payment.

• The Lender has to bring down interest rates so the monthly payments don’t exceed 38% of the borrower’s income.
• This initiative will match dollar-for-dollar any further reduction until the ratio comes down to 31%.
• The principal will also be reduced, if necessary, to lower the monthly payments. The Treasury Department will share the costs.
• Homeowner will be on a trial test with the new monthly payment for 3 months. If they make every payment on time the new rate and monthly payments will be fixed for five years.

Requirements for Eligibility

• Your mortgage had to be originated before January 1, 2009
• Owner-occupant (No investors)
• Unpaid balance of $729,750 or less.
• Be in financial hardship.
  • Due to increase in your mortgage
  • Income reduction
  • Suffer Hardship
  • Note: If you cannot afford the home due to job loss or a complete inability to pay, you will not qualify.
• Monthly payments have to be 31% of your gross monthly income.

There are several non-profit organizations in Charlotte NC and surrounding areas that can help you at no cost.

The Housing Partnership

4601 Charlotte Park Dr. Ste 350, Charlotte, NC 28217       (704) 342-0933

NACA (Neighborhood Assistance Corporation of America)

4822 Albemarle Rd, Charlotte, NC 28205      (704) 536-7676

HOPE

For more information visit http://www.makinghomeaffordable.gov/ or call us, we will assist you with any questions or need you have…

We hope you’ll find this information useful!

(Note: I apologize for any grammatical errors in this blog. My primary language is Spanish and I am currently working on improving my grammar in English. Thanks for understanding.)

John Paul Soto

John Paul Soto choose to work in Charlotte, NC real estate because he genuinely enjoy working with people, and believe it is an industry that rewards dedication and personal initiative. He also want to give back to his community, and he is currently employed as a firefighter for the Charlotte Fire Department.

John Paul Soto was born and raised in Guatemala, and moved to Charlotte in 2002 to attend college. He is currently pursuing a Bachelor’s degree in Business Management, and will continue to make his home in Charlotte, NC after graduation.

He takes great pride in his accomplishments and hope to continue to build a successful track record helping other people achieve theirs. He is now part of “The Soto and Ferreira Group” on of Charlotte’s NC best Real Estate Groups.

Thanks,

John Paul