The Federal Loan Modification Plan
It is easy to feel overwhelmed and even hopeless when you are facing severe financial struggles. If you are having difficulty making your mortgage payments while also meeting your family’s basic needs, you need to know about every form of assistance available to you. In addition to help from the private sector, such as attorneys and credit counselors, you may qualify for government assistance.
The Obama Administration’s loan modification plan has allotted $75 billion to help financially struggling people remain in their homes. If you are worried about a bank foreclosing on your house, you may be interested in learning whether you qualify for help under this plan. For more information about your financial and legal options, call the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C. at 443-546-4608.
Eligibility for Assistance
If the federal loan modification plan works, it is expected to help around 9 million Americans avoid losing their homes. However, the eligibility requirements for the program are somewhat strict. You may be able to receive assistance if all of the following apply to you and your family:
- You took out your mortgage before January 1, 2009
- You are struggling to pay your mortgage, or have missed payments, due to lack of funds
- Your mortgage is for your primary residence (not a vacation home, business, etc)
- The amount of money you owe (not counting interest) is $729,500 or less
- You are able to demonstrate significant financial hardship
- You are willing to undergo credit counseling if your total debt is more than 55% of your income
If your mortgage lender is a participant in the program and you meet these requirements, you will receive help in two different ways. First, your bank will reduce your monthly payments to no more than 38% of your gross income. In addition, the federal government will contribute funds to reduce your payments further, until they are no more than 31% of your gross income.
Contact a Maryland Mortgage Modification Lawyer
Even if you do not qualify for federal assistance, there are ways to resolve your financial struggles. For more information about refinancing, bankruptcy, and other options, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C. today at 443-546-4608.