Affordable Loan Modification, Washington

Affordable Loan Modification, Washington

President Obama’s home loan modification program, created to help you save your home and avoid foreclosure, is a government program that was designed to allow every American home owner to access an affordable loan modification, and the current low mortgage interest rates. With mortgage interest rates now below 5%, it could make a huge difference in thousands of Washington homeowners' monthly mortgage payment.

By lowering your interest rate just one percent, distressed homeowners could save hundreds of dollars on your monthly mortgage payment. For this reason, many Washington homeowners are now hoping to take advantage of President Obama’s “Making Home Affordable Plan” and get a mortgage refinance or Loan Modification into a lowered fixed rate and monthly payments.

Nearly all Washington homeowners now qualify for an affordable home loan modification under the Obama Plan, which now demands that your payments cannot be higher than 31% of your gross income. Most borrowers now find themselves above this number and now qualify for mortgage assistance.

For those who now owe more on their home than it is worth, eligible loans include those where the first lien mortgage does not exceed 125 percent of the current market value of the property. According to the Making Home Affordable website, if your property is worth $200,000 but you owe $250,000 or less on your first lien mortgage you may qualify. The current market value of your property will be determined after you apply to refinance.

If you are at risk of foreclosure, participating servicers may not proceed with a foreclosure sale until you have been evaluated for a modification under HAMP, and, if eligible, offer you a trial modification. Every troubled Washington homeowner should immediately see if you qualify for an affordable loan modification under Obama's HAMP Program.

If your servicer is not participating in the HAMP Program, you should ask your servicer or a housing counselor about other workout options that may be available. Borrowers whose loans have been scheduled for foreclosure and all borrowers who have missed one or more mortgage payments should contact a mortgage mitigation service immediately.

Homeowners should never pay for information on or an evaluation for the Making Home Affordable Program. Beware of any person or organization that asks you to pay an upfront fee in exchange for mortgage mitigation information or a loan modification evaluation.