Refinance Your Home through the Federal Mortgage Refinance Plan
“President Obama’s federal mortgage home refinance program offers a ray of hope to borrowers who have been struggling to cope up with their monthly payments. The government of the United States is providing billions of dollars in the form of refinance home loans to assist homeowners in preventing their homes from being foreclosed.”
Homeowners, who have been faced with foreclosures, could now take advantage of the federal mortgage refinance plan. The government program which is supported by a massive $ 75 billion stimulus package is primarily intended to assist borrowers who have been finding it hard to stay current on their monthly mortgage payments. Homeowners whose home values have declined drastically on account of the ongoing housing crisis could refinance their homes to considerably lower interest rates and thus, lower their monthly mortgage installments. This could enable them to keep their homes and save lots of money in the long run. Here is how you should proceed to get your homes refinanced through the federal scheme.
As per the guidelines of the federal mortgage home refinance program, if you are already into a home foreclosure, you have two alternatives at your disposal. You could contact your current mortgage servicer directly for opening up negotiations under the government plan or avail credit counseling facilities that are approved by the HUD. If the first option fails to deliver the desired result, you could contact a HUD approved credit counseling agency for negotiating your alternatives with lenders. Nevertheless, prior to contacting a credit counseling firm, it could be important for you to keep yourself ready with the below mentioned list of documents which your counselors may want you to produce at the time of consultation.
1. Details of loan account no.
2. Demand promissory note
3. Date on which you paid your last mortgage installment.
4. Amount that is due plus any letter from lender indicating the same.
5. Information regarding earlier efforts made to talk to the lender.
6. Notice received from attorney or court.
7. Copy of latest mortgage statement.
8. Name and address of your lender.
9. Insurance policy number and name of insurance agent
10. Copies of two recent pay stubs
11. Bank statements for the last two months.
12. Copies of W-2 forms and income tax returns for the last year.
13) Determine the exact amount you could pay for your home every month.
Furthermore, to apply for a refinance loan with the federal stimulus program, you need to draft a letter of financial hardship which specifies the reasons that led you to miss some monthly payments. You could request for a reduction in interest rates to extension of loan duration. Your credit counselor would then analyze your present financial and mortgage debt situation and thereafter suggest you with various options that are available under the government mortgage relief plan.
To get more valuable information on the Loan Modification and Second Mortgage eligibility and process requirements, it is hereby suggested to use the professional services offered by trusted online service providers like Obamaloanmodification.
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