Have you heard about the government bail-outs? But, did you know that there is a government bail-out for regular people who are down on their luck? Millions of homeowners experiencing financial hardship will qualify for mortgage help through a Federal Loan Modification.
Big businesses are not the only recipients of help in the 2009 Stimulus Package that President Obama's administration has pushed through.
75 billion dollars has been allocated in bail-out money to help homeowners avoid foreclosure and stay in their homes.
This is being done through rewriting mortgages that people already have, but can't afford any longer.
The loan must be on a primary dwelling.
That is where someone lives more than 50% of the time.
It cannot be a vacation home or rental property.
This is geared to the average person who has had something happen beyond their control to change their finances in a significant enough way that their house payment is now difficult to pay.
This is called financial hardship and it is an application requirement.
The house payment that they are supposed to be paying is more than 31% of their gross monthly income.
This payment figure includes property taxes, homeowner's insurance, and homeowner association dues.
This mortgage modification program targets a payment below 31% of the homeowner's gross monthly income.
To qualify to apply, you must have a Fannie Mae or Freddie Mac backed loan that is written by a bank that is on the approved lender list with the Treasury Department.
It had to have been originally signed on or before January 1, 2009, and the amount can't be more than $729,750.
There are more requirements that you need to investigate.
You can only obtain a Federal Loan Modification until December 31, 2012.