The new Obama refinance mortgages Package has put forth is a new initiative aimed at assisting struggling homeowners at risk of foreclosure or bankruptcy. Chase bank and others are involved with providing their customers with options from the government plan. In addition, they offer a jumbo, adjustable rate (ARM), interest only, or a fixed rate, among other measures to help homeowners keep their homes.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis.
How will President Obama's new bill affect loan modifications to help you if you are facing foreclosure? Some of the ideas that have been proposed that could have been included or still may be are: A moratorium on foreclosures - it could be proposed that troubled borrowers are allowed up to 90 days to keep their homes or work out a new loan modification with their lender. Expand credit for home buyers - there is currently a $7,500 tax credit available to first time home buyers. It could be expanded to all home purchases or increased to up to $15,000
Target mortgage rates near or at 4% provisions could be introduced to encourage lenders to offer fixed rate mortgages at 4%. Since mortgage rates often times are not and can not ultimately be controlled, the government would be subsidizing the difference between the targeted rate and current mortgage rates. More loan modifications - proposed loan modification plans include reducing the current monthly payment for troubled homeowners to 31% of their gross monthly income. The government would assist by sharing lenders losses and pay some of the banks costs.
Also keep in mind that the amount you owe on your mortgage must be greater than 105% of the current market price for your home's worth. These stipulations are mandatory in even being considered for the programs. Utilize known resources, such as the Federal Housing and Urban Development department (HUD). Since their services are free, you can receive advice and information on how best to approach Chase.
With the economy posting worse news every day, and with a new President in office, it is clear to everyone that there is an imperative need for something to happen quickly. Before becoming our newest President, President Obama introduced America and the world to his new ideas for a stimulus, which has now been translated into a bill known as The American Recovery and Reinvestment Act. One very important and much discussed aspect of this bill is the mortgage crisis.
How will President Obama's new bill affect loan modifications to help you if you are facing foreclosure? Some of the ideas that have been proposed that could have been included or still may be are: A moratorium on foreclosures - it could be proposed that troubled borrowers are allowed up to 90 days to keep their homes or work out a new loan modification with their lender. Expand credit for home buyers - there is currently a $7,500 tax credit available to first time home buyers. It could be expanded to all home purchases or increased to up to $15,000
Target mortgage rates near or at 4% provisions could be introduced to encourage lenders to offer fixed rate mortgages at 4%. Since mortgage rates often times are not and can not ultimately be controlled, the government would be subsidizing the difference between the targeted rate and current mortgage rates. More loan modifications - proposed loan modification plans include reducing the current monthly payment for troubled homeowners to 31% of their gross monthly income. The government would assist by sharing lenders losses and pay some of the banks costs.
Also keep in mind that the amount you owe on your mortgage must be greater than 105% of the current market price for your home's worth. These stipulations are mandatory in even being considered for the programs. Utilize known resources, such as the Federal Housing and Urban Development department (HUD). Since their services are free, you can receive advice and information on how best to approach Chase.
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