New Info about President Obama’s plan for Foreclosures….

This is all directly taken from the CNN Money Page, from an article, I figured I would focus on the important stuff. If anyone needs help with this, don’t hesitate to call me and I can help you figure out where you land, regarding your debt-to-income ratio that they are referring to.

The administration Wednesday released additional eligibility criteria and program guidelines.

The loan modification plan focuses on people who are behind in their payments or are at risk of default.

Federal officials clarified the definition of who is “at risk,” defining it as those: suffering serious hardships, declines in income or increase in expenses; facing an interest rate hike; having high mortgage debt compared to income; owing more than their house is worth, or demonstrating other reasons for being close to default.

To participate in the loan modification plan, borrowers must:

have obtained their mortgage before Jan. 1, 2009;
have a primary mortgage of less than $729,500;
live in the property;
fully document their income by providing tax returns and pay stubs;
sign a statement of financial hardship; and
go for counseling if their total household debt — including auto loans, credit cards and alimony — totals more than 55% of their income.
The modification program will be in effect until the end of 2012, but loans can only be adjusted once.


~ by debt2dreams on March 4, 2009.

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