URGENT HELP PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!?
Is this true or not; please I really need to know and can someone please translate it to Spanish.
Option ‘A’ — Mortgage Modification
If you are currently in default on your home loan, or at risk of defaulting soon, this is the government assistance program you should look into. Here are the pertinent details.
•Under the mortgage modification plan, homeowners who are falling behind on their payments could have their home loans modified by a lender.
•The goal of modification is to reduce the size of the payments, thus helping the homeowner to avoid foreclosure. This is good for the lender and the homeowner alike. The borrower gets to stay in the home, and the lender avoids yet another foreclosure on their books.
•Essentially, this would reduce the monthly payments to about 31% of the homeowners gross monthly income. This would be accomplished by reducing the interest rate in most cases.
•Payments would remain at this level for a limited period of time, five years in most cases. After that, the rate would gradually increase to the conforming loan rate at the time of modification.
•There’s some incentive built into this government program, for both the homeowner and the lender. People who make their payments on time could qualify for a reduction in their principal balance, up to $ 5,000 over the 5-year modification period. Lenders may also qualify for incentive payments, for each of the loans they successfully modify.
•To qualify for this government program, the unpaid principal of your mortgage (what you currently owe, minus interest) must be less than $ 729,750
•Speculators and investors need not apply. This program is designed for people who live in their homes as a primary residence.
•Eligibility for this part of the mortgage assistance program will expire in December of 2012.