Escape Foreclosure with Obama Home Loan Modification Plan
Home owners faced extreme difficulty managing debt repayment due to the economic crisis prevailing in the country. Before it is too late and you find yourself in this situation opt for Obama home loan modification program. Also due to the increase in the rate of foreclosure in the recent year real estate industry has taken a dip. House prices as a result went down to staggering rate. With low home equity the home owners faced a new problem: ending up in an upside down loan. Subprime borrowers are those with worse credit score but making both ends meet. But the upside down mortgage loan leaves the borrower paying more than the value of the home.
Government has to find ways to rehabilitate the drowning economy and in order to do so it has to focus on the revenues generated by the most important industry: housing. Hence Obama federal loan modification program understanding this need of the hour introduced this program to help the struggling home owners. Obama home loan modification plan was formally started in March 2009, while it was introduced in the market in February 2009. As the name of the program implies it involves modifying the terms and conditions of the loan. But what exactly is that modification applied to? The modification involves, for instance, modifying length of the loan, rates charged and repayment schedule.
The borrower needs to be out of the upside down loan in order to qualify for this program. Also the debt to home equity value ratio shall be more than 80%. This means that in order to qualify for Obama home modification loan the home owner has to have 80% or more home equity. More than a million home owners were helped with the help of Obama home loan modification. Home owners are helped by mortgage loan lenders like USLOANZ.COM by modifying the length of the loan and also by lowering the interest rate. Both these modifications help in reducing the cost of borrowing. Obama home loan medication lenders are also compensated and given incentives for helping the struggling home owners.