Home Stimulus Package - How Long Do You Have?
President Obama has signed a Home Stimulus Package to rescue qualified homeowners from foreclosure. If you are in default on your home mortgage, you might intend to apply. But, how much time do you have?
First of all, the deadline for a loan modification through this plan is December 31, 2012. But, do you really have time to waste? If you are behind in your mortgage, you surely realize that the bank will only be tolerant for a certain period of time. Foreclosure could be much closer than you actually think. If you think you could qualify, you should not delay.
At the same time, you need to take your time to apply! This may sound confusing to you, but it is quite important. When you apply for a loan modification, you are actually applying to your bank to have your current loan rewritten so that you have lower monthly house payments. You also get a new start, untangling the mortgage mess you have gotten into with late fees and such. But, you do have a lot of figures to compile to present your application, and it is important to get it right. You are only allowed one application under the program.
You must have documentation for everything you present in the application. You will be required to present an explanation about what happened to you to cause the current financial distress, and also how you intend to make the new payment in a timely, reliable manner. All these income and expense figures have to be verified with the appropriate documents.
It is so important that you do this carefully, and understand all the program guidelines before you complete your materials. And, by all means, do not contact your lender until you have everything compiled according to the exact guidelines of the program. This will increase your chances of acceptance.
First of all, the deadline for a loan modification through this plan is December 31, 2012. But, do you really have time to waste? If you are behind in your mortgage, you surely realize that the bank will only be tolerant for a certain period of time. Foreclosure could be much closer than you actually think. If you think you could qualify, you should not delay.
At the same time, you need to take your time to apply! This may sound confusing to you, but it is quite important. When you apply for a loan modification, you are actually applying to your bank to have your current loan rewritten so that you have lower monthly house payments. You also get a new start, untangling the mortgage mess you have gotten into with late fees and such. But, you do have a lot of figures to compile to present your application, and it is important to get it right. You are only allowed one application under the program.
You must have documentation for everything you present in the application. You will be required to present an explanation about what happened to you to cause the current financial distress, and also how you intend to make the new payment in a timely, reliable manner. All these income and expense figures have to be verified with the appropriate documents.
It is so important that you do this carefully, and understand all the program guidelines before you complete your materials. And, by all means, do not contact your lender until you have everything compiled according to the exact guidelines of the program. This will increase your chances of acceptance.
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