Christian Debt Recovery

2009 Mortgage Debt Ratios

December 28th, 2007 |

Author: Gavin

Obama’s 2009 Stimulus Package Helps Homeowners Refinance and Modify HSBC Bank Loans

Did you know that banks are eager to assist homeowners in modifying their existing mortgage loans? Because of the Stimulus Package by President Obama, millions of Americans facing financial hardship are able to apply for the assistance they need in order to make their mortgages affordable. As a way to keep banks from losing out on the foreclosed loans, the government is paying $1,000 to lenders for every time they successfully modify a mortgage loan. In that way, both sides benefit, and help the housing market and the overall economy to improve at the same time.

HSBC Bank has agreed to participate as a lender offering programs to those who qualify. Since they help homeowners who are facing foreclosure or bankruptcy, here is what you need to know in order to apply for their programs:

* Start by writing a hardship letter as soon as you begin having problems in making your monthly mortgage payments. This letter needs to contain your reasons for why you are unable to pay, your current income-to-debt ratio, and the measures you have taken so far in trying to keep your home. You will also need to clearly show your lender that with adjusted, lower payments you will be able to get back on track without falling into hardship in the future. This letter is vital to your success during the application process, especially if you have already received a “Notice of Default” letter from your lender.

* Maintain an approachable manner where you are willing to answer your lender’s questions and be prepared for what you need to say and do. Persistence is key in getting what you want in the long-run, but your attitude and how you conduct yourself will ultimately determine whether or not your lender will be empathetic to your case and grant you approval.

* Be diligent and thoroughly in reading and completing all the required paperwork needed during the application process. Failure to have your documents accurate, or your inability to understand what you need to present, will cost you the chance of having your loan modified.

* Be aware of your existing loan’s terms and what options are available to you, before you even apply for assistance. That way, you can better prepare yourself and approach your lender with confidence and save time on both your parts.

* Your mortgage payment can now be down to 31% of your gross annual income, and may include a lowered interest rate, or a fixed rate.

* You can obtain free financial advice from contacting your local Housing and Urban Development department (HUD). They will provide you with assistance in managing your finances and help you in approaching your lender.
About the Author

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net