If you are a homeowner distressed by thoughts of repo homes, read on. Your mortgage loan might qualify for modification under President Barack Obama’s program to mitigate repo homes. If your loan is modified by your mortgage lender, your monthly payment will be reduced to an affordable level so that you would not struggle too much and you would save your house from following the fate of repo homes.
Here are the qualifications issued by the Treasury Department for homeowners applying for loan modification under Obama’s foreclosure prevention program.
The first qualifications are about the characteristics of the home. The home must be occupied by the borrower and must be the primary residence. Residence requirements are examined through credit reports, utility bills and tax returns. It must also be a single-family housing structure with up to four units, which could be a condo, a cooperative or a manufactured house based in a site and taxed as a real state property. The home also must not have been condemned or left vacant.
The second qualifications concern the borrowers. Homeowners whose mortgages are in active litigation can apply for modification under Obama’s program to mitigate repo homes without prejudice to their legal rights. Likewise, homeowners who have filed for bankruptcy are not excluded from the program. They can still apply for loan modification.
The third qualifications are about the mortgage loans. Mortgages must have been initiated and taken on or before the first of January 2009. The loans must be first lien loans and their current unpaid balance just before modification must not be more than $729,750 for one-unit homes, $934,200 for two-unit homes, $1,129,250 for three-unit homes and $1,403,400 for four-unit homes. Each mortgage is entitled to only one modification under Obama’s program to avert the rise in repo homes.
Other rules are about liens, deadlines, monitoring and actions related to repo homes. Secondary liens, such as home equity loans, lines of credit or second mortgages, are excluded from the front-end debt-to-income computation, but are considered when back-end debt-to-income are calculated. For eligibility screenings, minimum or maximum loan-to-value ratios are not considered.
The application period for mortgage modification under Obama’s program ends on December 31, 2012. Cash incentive programs for borrowers however will continue for up to 5 years starting from the date the borrower’s modification application was approved.
Lastly, remember that these instructions are only guidelines. Contact your lender or a mortgage modification specialist to check whether you are qualified or not under the program.
Author Resource:-
John Cutts has been educated in the finer points of the foreclosures market over 5 years. Read articles about repo homes information on Foreclosure-Repo-Auction.com - Find foreclosure listings of repo homes.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites