Extraordinary economic conditions mean many valid options for debt management and reduction. Today a USA Today article examines details to the Obama housing rescue plan just announced. To qualify for the assistance through this loan mortgage modification option, one will need to demonstrate:
1. An affadavit of financial hardship.
2. A copy of their last tax return filed.
3. Copies of two recent pay stubs.
4. That their mortgage loan was issued before January 1, 2009.
Another important condition is that “[t]hose with first mortgages of more than $729,750 do not qualify.”
There are other helpful programs in the plan, which include the ability to refinance into more affordable terms for those whose lender is either Fannie Mae or Freddie Mac. One needs a “solid payment history on mortgages”, does not have to have 20% equity in the house, may have to get the home appraised in order to qualify, and the program ends in 2010.
Another important change under the Obama housing plan is that for those that are either (1) more than 30 days past due on their mortgage payments or (2) those in delinquency on their mortgage payments, their particular lender will be required to use a formula in order to determine the terms of loan repayment moving forward.
In short, there are a number of new rules and programs coming on-line now, so to take advantage of housing relief, be proactive and phone your lender. Ask them about qualification for these programs and get the ball rolling towards better mortgage terms. Depending on the terms, an even more effective approach entails reaching out for mortgage relief as a first step in a pledge to revise one’s debt management. Set a plan with strict deadlines to amass all of your financial documents in one pile, sort through them and make rough piles according to topic (e.g. housing, auto, educational, other loans) and start to get organized. The costs otherwise are enormous.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: housing debt elimination plan, housing debt management, housing payment reduction strategy, mortgage burden reduction, mortgage debt management, mortgage loan modification options, mortgage loan modification plan, mortgage loan modification strategy, mortgage payment mangement options
