A Comprehensive Description of Home Affordable Refinancing, a Federal Loan Modification Program
The Federal loan modification program was introduced by the Obama administration with an intention to rescue millions of people from the clutches of debt and foreclosure. The loan modification help was intended for those people who had taken the first mortgage loan for their homes on the ground that they had a stable enough financial source to pay back the monthly installments but the problem arose when these people met with emergencies or circumstances that led to their financial down fall.
Since the time the home refinance program was also introduced many people had gone for that option which meant reduction in the overall rate of monthly mortgage payment with a low rate of interest. But for people who home value continuously depreciated the Obama loan modification program was guaranteed to bring them out of their woes. Like any other financing program the Bank of America loan modification program required the borrower’s to have their first mortgages under Fannie Mae or Freddie Mac only and so other people who had their their mortgages covered under some other insurer were not eligible to qualify for the Obama loan modification program. As per the FHA loan modification requirements the existing loan mortgage structure would be converted to reduce or re-organize the loan structure so that it is affordable to the people applying for the loan modification help. This indirectly helped people avoid foreclosure proceedings amidst the downward spiraling US economy and home value.
As per the FHA loan modification requirements there were several conditions which one had to meet to even qualify for the Federal loan modification program. Some of the eligibility criteria were: One can apply for the Bank of America loan modification program only if one has a one to four unit residential property which is his primary residence. The mortgage on the home must be covered by insurers Fannie Mae or Freddie Mac. One should not be behind on the existing mortgage payment by more than 30 days within a year. An individual has to own only one residential property under a single mortgage.
Once the loan modification help is on its way which means you have qualified and your application has been approved from then on it is extremely important to make monthly payments on time so that a second notice is not sent to you which can sometimes cause permanent damage. Defaulting on ones Bank of America loan modification program can also enable your lenders to proceed with the foreclosure because your Federal loan modification program was approved with the intention that you want to pay off all your outstanding debts on the mortgage and free yourself of debt. However, since you are once again unable to meet that goal, the end will also be snatched away from you by your lenders.
FHA loan modification requirements need one to be convinced about ones financial situation and one ability to pay off a reduced mortgage amount to pull ones home out of crisis. Any doubts regarding the loan modification program can be addressed at free seminars held on the Obama loan modification programs. All you need to do is contact the Housing and Urban Development Office and also talk to your mortgage loan lender to understand the entire process and also whether you are eligible for the loan modification help.
Mike Parrel is a regular writer on Obama-loanmodifications.com, a US based portal, which provides detailed information on Federal Loan Modification Programs and Obama Mortgage Relief, FHA loan modification Requirements and other Obama loan modification program related issues.
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