Real Estate Update

The Federal Government in 2009 is all set to save your homes from foreclosure and give you a smooth life unaffected by the economic slump. Many Americans in the recent past have lost their jobs and are facing losses in their businesses. They are frequently facing foreclosures or declaring bankruptcies. As a result, the property market has gone for a toss and the banks and / or the mortgage companies have run in to losses as well. Even after selling off the home, they are not able to revive their money. Now the Obama's plan to check on the situation is loan modification and grants. Though, loan modification did not work well in the previous years, Obama blames it on 'affordability.'

He explains, the loan modifications done in the past did not actually alter the amount of the monthly payments and the borrower landed up in a lapse in another 6 months. Our loan modification plan is rather practical. Now the amount of the home loan monthly payments can not exceed 31% of the current gross monthly income of the borrower. Also the total of the all the mortgage and loan payments like car, credit cards, home loan etc. can not exceed 55% of the total pre tax income of the borrower.

Tips to stop foreclosure with Housing And Urban Development (HUD)

Here are the tips to grab your share of loan modification and grants in order to normalize your life and save your home from foreclosure with the help of the HUD (US Federal Housing & Development Department):

  • Time is the key. So do not keep thinking and take an action today itself.
  • Right information is utmost important. So you must gauge through the Government websites and get your facts right.
  • The Federal Governments is dealing with these grants & loans directly. So, the only means to get your share is to log on to the HUD website and fill in the form.
  • Now, once you have filled in the form, there is no looking back. So you must double check the information you are furnishing there.
  • The website also comprises of a downloadable guide. Make sure that you read through this guide in order to fill in the form correctly.
  • There are some basic facts that make you eligible for the loan modification. Surely check on those. For instance, if your mortgage amount is more than 105% of the current market value of the house, you can apply for a loan modification.
  • Also if your mortgage deed is owned or insured by Fannie Mae & Freddie Mac, you are eligible for the loan modification.
  • The first time home buyers can enjoy special grants.

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure. To know more about Latest Loan Modification Programs and to check if you qualify

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