In March of 2009, the U.S. Treasury released the details of the "Home Affordable Modification Program". The "Making Home Affordable Program" is intended to help consumers save their homes in the current economic crisis by restructuring the terms of the mortgage. The treasury received 75 billion dollars from the stimulus package and established guidelines as to how they wanted the mortgages to look after going through the process.
The U.S. Treasury Loan Modification Plans were aimed at 2 groups:
1) People who took out Adjustable Rate Mortgages (ARM) on unfavorable terms with the understanding that the loan would be more favorable in one or two years
2) People who are in default and are in an economic situation where income has gone down and the mortgage has ballooned. The Treasury Secretary wants to bring down loans to a more conventional payment.
Protect your security and your rights. Contact attorney Richard Croak today by calling 518-213-3359 or contact the office by e-mail.
Do I Qualify for the U.S. Treasury Loan Modification Plan?
If you are unable to make mortgage payments and are in serious default, or if you agreed to a mortgage on unfavorable terms with the expectation that they would change, you may qualify for a loan modification under this program. The treasury will make a fundamental determination as to why a person should have a mortgage or not. They will look at the debt limit, your income and how much your house is worth. Taking into consideration all of these factors, they will then restructure a new mortgage where the total debt is not more that 35% of your income, taking into account total expenditures.
Problems With the U.S. Treasury Loan Modification Plan
This program applies to Fannie Mae and Freddie Mac loans, including everything that's issued under FHA, the VA, HUD, as well as all government backed loans. Often, homeowners do not know where to start the process of restructuring a loan. Banks are not informing consumers of their rights to rewrite a loan and do not have any real incentive to take action.
Know Your Rights and Take Action With Counsel You can Trust
Richard Croak and his associates are committed to helping clients achieve debt relief. Whether renegotiating a loan or helping you take action under Chapter 13 bankruptcy to help you stop foreclosure, we will keep you informed of your rights and options. To protect your rights under the U.S. Treasury Loan Modification Plans program, we will write letters of hardship and help you prepare your household budget.
For more information about bankruptcy options and your rights, please contact lawyer Richard Croak at his Albany, New York, office for an initial consultation by calling 518-213-3359.
"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."
