Post recession, many Americans have either lost their jobs, are at lower paying jobs or have taken a pay cut at their current job. According to the Bureau of Labor Statistics, one in five Americans are earning at least 20 percent less since before the recession. As a result, homeowners are seeking relief through loan modifications on their mortgages. However, bank requirements are stiff and a low percentage of Americans are actually approved for a loan modification.
A common requirement is that the homeowners’ bills, including a mortgage payment, cannot exceed 45 percent of their total income. Many times homeowners will obtain a second job to meet this requirement. However, most banks require a homeowner to be at the job for a minimum of 12 months before applying for a loan modification. One thing homeowners can do to increase their chances of getting approved for a loan modification is to try and pay down any credit card debt before applying.
During 2012 many mortgage lenders initiated programs to help homeowners who are underwater on their mortgages. States across the country have also adopted their own programs to help struggling homeowners. The federal government has initiated the HARP program and the Federal Housing Authority Streamlined Refinancing program.
To read more on this story visit: http://www.nytimes.com/2012/09/23/realestate/mortgages-help-for-the-underemployed.html?ref=loanmodifications&_r=0
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
