Christian Debt Recovery

Mortgage Debt Ratio

April 4th, 2011 |

Author: Gavin

Wells Fargo Home Loan Modification – Important Debt Ratio Qualification Information

When the Obama administration launched its Home Affordable Modification Program in 2009, the government’s goal was a simple, but important, one: It wanted to slow the number of housing foreclosures sweeping the country. This is still an important goal: According to foreclosure information Web site RealtyTrac, U.S. property owners received 2.8 million foreclosure filings in 2009. That’s an all-time record.

If you hold a mortgage loan serviced by Wells Fargo Home Loans, you might qualify for a loan modification through the federal program. The government is offering financial incentives to companies such as Wells Fargo to encourage them to modify the loans of homeowners who are struggling to pay their mortgage bills each month. Lenders can do this in several ways: They can reduce the principal balance of homeowners’ loans, lower the interest rates attached to them or restructure the loans’ terms. Each of these steps will lower the mortgage payment of homeowners and, hopefully, allow them to avoid defaulting on their home loans. This will, in turn, keep them from losing their residences to foreclosure.

There are certain qualifications, though, that homeowners must meet to qualify for a loan modification. The most important might be debt ratio. According to the Home Affordable Modification Program regulations, the total mortgage loan payment — including interest, property taxes and other fees — of homeowners must be more than 31 percent of these owners’ gross monthly incomes.

The theory is that homeowners who aren’t spending this much on their mortgage loans do not require a modification.

There are other requirements that homeowners must meet, too. They must be seeking a modification of a loan attached to a primary residence. Second or vacation homes are not eligible for modifications under the federal program. Homeowners must have a mortgage loan of $729,750 or less, and they must be struggling to pay their monthly mortgage loan. Finally, they must have taken out their mortgage loan on or before Jan. 1, 2009, to take part in the federal loan modification program.

The federal program has a goal of preventing 3 million to 4 million housing foreclosures. So far, it is not reached this goal. However, homeowners who are struggling to make their loan payments, and who have the necessary debt ratios to qualify for it, should call their mortgage lender immediately. It might mean the difference between losing their homes to foreclosure and keeping them.

NOTENow Pay Close Attention –

On the next page you will find loan modification specialists that have proven track records for helping homeowners modify their home loans and cut their payments in half ==> How To Modify Your Home Loan & Cut Your Payment By 50%

So If you want to cut your mortgage payment in half and stop the banks from taking your home then I strongly recommend that you to read everything on the next page before it’s too late!

Visit this page ==> Home Loan Modification Specialists

About the Author

Everyone’s using The Most Effective Loan Modification Specialists to get their home loans modified and you can too.

Click Here to learn how everyday people are modifing their home loans, stopping foreclosure and saving thousands.

Loan Modification For Dummies

$19.99

The crucial information you need to secure a reliable loan modification and save your homeBehind on your mortgage payments? Worried about losing your home? Don’t panic. Loan Modification For Dummies gives you the reliable, authoritative, easy-to-understand guidance you need to apply for and secure a loan modification that lowers your monthly house payment and keeps you in your home. This practical…