| p>Do you have a first and second loan on your | | | | not mandatory. |
| home? Having trouble making the mortgage | | | | Homeowners who have lost alot of value due to the |
| payments due to a financial hardship? The federal | | | | housing downturn may be offered a loan workout |
| bailout for borrowers now offers a program to help | | | | that includes forgiving or deferring a large chunk of |
| those facing imminent default. Homeowners facing | | | | their second loan balance. Many homeowners who |
| financial hardship may qualify for help on their second | | | | are underwater are simply deciding to give up their |
| mortgages with the federal loan modification plan | | | | home-adding to the mounting foreclosure problems. |
| enacted by President Obama. The very aggressive | | | | The idea is to encourage borrowers to keep making |
| loan workout program is aimed at reducing mortgage | | | | payments by helping to reestablish a more equitable |
| payments so that borrowers can avoid foreclosure | | | | position on their home loan. Although not everyone |
| and stay in their homes. This plan is extended to | | | | will be given this option, it is being offered more |
| include second trust deeds. If you have a second | | | | frequently. Be sure you contact your second trust |
| mortgage, here is some helpful information on how | | | | deed holder to inquire about the possibility of |
| to apply for a loan modification using this program. | | | | forgiven or deferred principal. |
| This is a voluntary program, but most lenders are | | | | Interested homeowners will be asked to prepare a |
| expected to be participating. The Treasury | | | | loan modification application and provide evidence of |
| Department will pay banks up to $1500 for each | | | | a financial hardship situation. A determination will be |
| qualified mortgage that is modified under the | | | | made based on this information, and qualified |
| program. That is a big incentive to get the lenders to | | | | homeowners will be eligible for this aggressive |
| offer help to desperate homeowners. In addition, | | | | program. A successful borrower will be able to submit |
| borrowers will be paid-for-success under this plan. | | | | a complete and accurate application that meets the |
| Eligible homeowners will receive $500 upfront and | | | | requirements for approval. Make sure you understand |
| $250 for three years as long as they do not | | | | how to prepare your paperwork before contacting |
| re-default. This bonus payment will be credited | | | | your lender. Trying to prepare your own accurate |
| towards the loans outstanding balance. | | | | and acceptable financial statement can be frustrating |
| A loan modification on a second loan under the | | | | and confusing. Take advantage of the new Loan Mod |
| federal plan could include lowering the interest rate to | | | | Quick App software program to help you with your |
| 1% for five years to achieve an affordable and | | | | application. SImply input your own financial information |
| sustainable payment. The government may subsidize | | | | and the software will do all the calculations for you. |
| part of the participating banks losses caused by the | | | | Why take chances with your home? A new lower |
| new loan terms. Another option under this federal | | | | payment could be the solution you need to stay in |
| loan workout involves paying the bank that holds the | | | | your home-make sure you take the time to do it |
| second lien up to 12 cents on the dollar to retire the | | | | right. |
| debt. This will be at the banks sole discretion and is | | | | |