Time is of the Essence | Loan Modification Part 8

Timelines for federal aid

You should have a pretty good idea by now of whether you are eligible for Loan Modification or Refinancing through the federal foreclosure prevention plan. So, do you need to start filling out your paperwork right now?

In short, the best answer is “yes.” If you are struggling with your mortgage, the sooner you get help, the better.

For those not struggling … yet

It’s best to apply for aid as soon as possible because there is a finite amount available. However, for people who run into trouble in the near future, the foreclosure prevention plan will be around to help for a little while.

For those who will apply for refinancing on their personal loans through the government’s program, a very little while.

Refinancing

Just to refresh, the refinancing part of the foreclosure prevention plan is for homeowners who are not behind on payments. Only homeowners with loans through Fannie Mae and Freddie Mac can take advantage of this part of the program.

Homeowners must show proof of hardship and have mortgage payments higher than 31 percent of their income. If they qualify, their mortgages can be refinanced to bring payments down to that level. ... click here to read the rest of the article titled "Time is of the Essence | Loan Modification Part 8"