Home Loan Modification - HERE WE GO!

Let's put our thinking caps on. If you bought your house in 2004 when the interest rate was at an unheard of 4.85% and you spent approximately $180,000 on your house.You financed an 80/10/10 (which is $18,000 down and 2 loans for the total of the amount) for 30 years and you told yourself you would make that extra payment every year to help pay off the loan faster. You have a payment of $1200 between both loans, an insurance payment of $100 a month and property tax of $350. Your monthly total is $1650 which is reasonable considering you make $4000 a month after taxes. You can be comfortable, not a millionaire by any means, but comfortable. Now the year is 2009, your company was taken over by a bigger firm and your department was shut down. You dip into your savings for a couple months payments while you look for a new job. As time passes you realize that you are part of that 10% that is unemployed and can't find work. Your 3rd payment is coming up and your accounts are dwindling. You put your pride aside and take a job at the local super market. Your take home pay now is about $1500 after taxes. Not enough to cover the mortgage among other normal family spending, which had to be drastically reduced. You call your mortgage loan provider and tell them the situation and you beg and plead for help. You tell them how your whole life you were a hard worker and now you must have killed some one in a past life for all this bad stuff to be happening to you. What decision can you make to help yourself and your family? Is there anything that can help you keep the roof over your head? Then the service agent at the mortgage provider says the magic words,"a Home Loan Modification!"



She goes on to explain what it is and what it requires to qualify you for a loan modification or loan mod. She asks various questions such as:



• "Is the property your primary residence?" YES.



• "Is the amount you own on your first mortgage is equal to or less than $729,750?" YES.



• "Are you having trouble paying your mortgage for some reasons; i.e. you have had a significant increase in your mortgage payment or reduction in your income since you received your current loan or you have suffered a hardship that has increased your expenses?" YES



• "Have you obtained your current mortgage before January 1, 2009?" YES



• "Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) is more than 31% of your current gross income?" YES



After speaking with her you realize this is the best option for you. If your house payment is lowered and you can lower some of your other debt, it might free up some time to get that new job. It might help you start a new life. So now we can leave our thinking caps on and not ever take them off because you learned how to help yourself and save your home!



For more information, please visit http://www.mycaal.com/