Obama Administration has come up with the Home Affordable Plan in order to help borrowers who are upside down in their mortgage payments. The borrowers can either opt for a refinance or loan modification. In order to refinance their properties, the borrowers should be current on their mortgage payments.
If they are not current on their payments, the borrowers may apply for the loan modification wherein the lenders can reduce their interest rates to as low as 2%. In lieu of that, the lender may increase the term of paying off the dues. The government, on the other hand, will provide the lenders with incentives for that. _________________ Procrastination is the enemy of your financial sucess
I also heard that the government is giving upto $1,000 to the lender every month to cover the difference for those mortgages that are modified and possibly upto $1,000 to the homeower to offset the payments for a 3-5 year period - do you know if this is correct or not? _________________ Karla A. Sitko
Sr. Mortgage Banker
"Your Interest Is My Priority!"
www.LowerMyMortgageRateNow.com
Well as far as I know, the government is giving the lenders an incentive to lower the interest rates and modify the loan. However, I do not know the exact amount the government is giving the lender to cover the difference.
mtgfixit
