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Foreclosure Prevention Numbers First Quarter 2010
Thursday, July 1, 2010
Mortgage loan modification plans are becoming a popular way to preventforeclosure, as evidenced by the above numbers. Within the last quarter of2009, there were over two-thirds of loan modifications that lowered aborrower's payments by over 20%. Mortgage loan modification plans are givingpeople the help they need to stay afloat in this rough economy.
To sign up for a mortgage loan modification plan, there are certainrequirements that must be met. It is important to note that a loan modificationplan is not the same thing as a loan refinance plan. The Fannie Mae and FreddieMac loan modification program is actually intended for people that have stayedcurrent with the payments of their home. While refinance can apply to any typeof loan, this program only applied to Freddie Mac or Fannie Mae secured loans.This mortgage prevention plan also helps homeowners that may have a secondmortgage on a home.
To qualify for the mortgage prevention plan, one must not have a payment thatis 30 days overdo within the last 12 months. In addition, the home must be theplace of primary residence for the borrower seeking to participate in the loanmodification program. A homeowner must also not exceed certain amounts owed ona home. The homeowner must not exceed $729,750 dollars owed on the home. Aperson must also demonstrate some sort of hardship to be able to qualify forthe loan modification program, such as a lowered income, very expensive medicalbills, or a loss of job due to the economy.
To request a loan modification, one must go through the first loan mortgage servicer. This is the entity that receives mortgage payments on a monthly basisfor one's home. One can simply call the loan mortgage servicer and ask to applyfor the loan modification program. After, the servicer will initiate theapplication and send the necessary documents to the borrower through mail.
Overall, the number of people taking advantage of loan modification programs isincreasing on a quarterly basis. These programs are helping people keep theirhome, rather than put them into foreclosure.