Moving house is such a big event it polarizes activities and resets schedules. Things can move so fast and unexpectedly that you would not know what hit you. But it is exciting and exhilarating. And the prospect of moving to a much better home or a preferred community brings satisfaction and a sense of accomplishment to the family. http://ochousingnews.com/housing-bailouts-false-hopes/ is an excellent resource for this.
Foreclosures meanwhile are emotionally draining and leave a bad taste in the mouth. It leaves family members in a state of uncertainty. There would be a sense of defeat or loss. It can even lead to damaged relationships and destroyed marriages. It is to the best interest of homeowners that they take extra effort to save their primary homes from foreclosures. What can be done to avoid a foreclosure? One thing you can do is to get help from a mortgage modification bailout program.
Homeowners can file for loan modification that suits their present financial condition. Tailor fit, an approved home loan modification is expected to let the homeowner make regular consistent payments so that he or she can keep their home instead of watching a for sale sign go up outside.
How does a home loan modification work? The first thing that you will need to do is file for a mortgage modification with the bank where your home is mortgaged. This is the bank that is holding your property and servicing it. Then there are a few considerations that the bank will be looking at. One is that the home you are filing for is your primary residence. This program does not work for houses that you bought for investment purposes. Another is whether the loan is a first mortgage. If it were not, it will be declined.
An important measure that the bank will be looking at in its decision to approve or deny your loan modification application is your debt to income ratio. This is the ratio of how much money you make against how much money you spend to pay off your existing mortgage and other consumer and personal loans. It is important that you know what your debt to income ratio is so that you can make expense adjustments if needed when applying for a mortgage modification bailout program.
To compute, you will need to add up your mortgage expense and then divide them by the amount of money that you make every month before taxes. An ideal debt to income ratio is 30% or lower. At 30% this means that if you are making USD 3,000 a month you are only paying USD 900.00 to service your debts. Although you could still be approved with over 30%, it will be difficult for you financially. It is tougher for those who are in the 40% bracket. The worse can be said of those who have 50% or higher ratios. Experts believe those in the 50% bracket are living dangerous financial lives.
If you plan to go for mortgage loan bailout program and you know that you do not meet the requirements, or are hesitant to deal with the bank’s authority, it will be better that you get the advice of a home loan modification expert. You will get expert advice from them and they will ensure you do everything right to be able to modify your loan.