In response to the overwhelming demand for loan modification, President Obama has released a new program to assist in keeping upwards of 9 million financially challenged homeowners from avoiding foreclosure. This is an aggressively dramatic and exciting approach to the housing problem, which should make a significant impact into curtailing the rate of foreclosures thereby assisting to balance our the struggling economy.
The bullet points of this new plan are as follows:
*Provides for rate reductions as low as 2% to qualify
*Principal Reductions to qualify borrower on 31-38% front end DTI
*Extending loan terms from 30 yr - 40 yr so borrowers can qualify
*Trial period of 3 mo. to establish a payment record
*If trial period is successful, then loan becomes permanent
*Primary residence only
*Government pays lenders to participate
This program could make a significant impact in our housing crisis...stay tuned...
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