Need Mortgage Refinance

When you are writing to your home mortgage lender with a view to securing a loan modification package being offered as part of Obama’s stimulus plan for homeowners under the ‘make home affordable’ initiative. You will need to explain how you have fallen into financial hardship.

It may be possible that the bank has a hardship form of some sort that you can fill in, which would be useful as then all you would need to do is answer their questions honestly and explain how you came to be in a situation of not being able to afford your mortgage payments.

In the absence of a form however it is a really good idea to use hardship letters that follow a template to include all the information that the bank or lending agent would expect you to provide, a sort of hardship letter sample.

Below is a request letter template that shows you how to construct a letter for this purpose.

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Obama’s government has come up with home refinance stimulus package and loan modification programs to help all the needy owners in avoiding foreclosure. This program is designed specifically for all the borrowers who are facing financial hardships as they are not in a condition to repay the loan. The home refinance stimulus package and loan modification would cover as much as 9 million mortgages and the government would spend $75 billion for helping the homeowners.

Obama’s Stimulus Package has 2 main components:

1. Refinance

2. Loan Modification

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With the new incentives for mortgage refinancing and loan modifications coming into existence since Barack Obama signed off on the new rescue plans for homeowners facing difficulty with their mortgages in the wake of the finance industry’s near collapse,  it can be quite confusing as to what is what in the mortgage refinance world.

One thing you should know for sure is that there are differences between the mortgage refinancing program from Obama’s initiative “Making Home Affordable’  and an earlier initiative that came from George Bush  the ‘Hope for Homeowners’ program.

Hope for Homeowners Program

This program is administered by the Federal Housing Administration and its key features are as follows: (more…)

If you are looking to get a home mortgage loan modification that allows you to take advantage of Obama’s new stimulus package you will need to understand the rules that have been applied to know whether you actually qualify for this type of loan modification.

The first general rule is that you should be struggling to make your mortgage payments if you are meeting your mortgage payments comfortably then you are not going to qualify. So what exactly do the stimulus package rules say for loan modifications: -

• You have to be in residence of a single family home
• Your total repayments including capital repayments, interest, tax and insurance must be more than 31% of your gross income (from March 2008)
• Your mortgage balance must not exceed $729,750 for a single unit but for multiple units the amount can be up to $1,403,400 for the maximum 4 units
• Your mortgage pre-dates the 1st of January 2009

What you should also know: -

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Wells Fargo Loan Modification & the Obama Federal Program
By Susan V. Gregory

A Wells Fargo loan modification is easier now for distressed borrowers with the Obama federal plan. This government loan workout offers the opportunity for millions of homeowners to reduce their interest rate and achieve a low affordable monthly mortgage payment. Do you know how to apply for a Wells Fargo loan workout using this plan?

Even if you have already applied for a Wells Fargo loan modification and been turned down, or are still awaiting your answer, you can ask to be considered for the Obama federal government plan. The approval guidelines are strict, but if you know a little bit about how to complete your paperwork properly, you could have a good chance of getting:

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We are all well aware of the economic chaos that the whole world seems to be in at the moment and are all sitting on the edge of our seats to see if the new stimulus package that President Barack Obama has championed is going to work in stemming the flow of the foreclosure’s on people’s homes when they have struggled to meet their mortgage repayments.

The Obama new stimulus package amounts to a massive $1 trillion bale out package that offers new loan options, grants and tax credits. So for home owners that are struggling, there is relief in site and it is possible to take a home loan mortgage refinance option to get lower rates of interest or longer repayment periods.

Obama has offered a $1000 incentive to encourage home owners to opt for mortgage refinance or loan modification instead of going for a short sale or foreclosure option.

There are rules that apply to these mortgage refinance deals : -

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