If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Calibri","sans-serif";} Millions of American homeowners have been stung by the mortgage crunch over the last few years. In 2008 alone 1.3 million homeowners faced the real situation of being unable to pay their mortgage and subsequently lost their homes in foreclosure. With the help of new legislation the Home Affordable Modification Program has been put into action to help millions more of Americans who face the same situation. Who is Eligible? The loan modification program administered by the federal government will make efforts to help millions homeowners having trouble paying on their mortgage. To be eligible, a mortgage must have been funded on or before Jan. 1, 2009. Other eligibility requirements include:
- Owner occupied properties Only homeowners who make their mortgaged home their principal residence are eligible. Real estate investors who rent their property are not eligible.
- First lien only Only the first mortgage is eligible for this program. Any secondary mortgages are not eligible.
- Maximum principal balance Only the first $729,750 of principal balance on any first mortgage is eligible for modification.
- Lower Debt Service Requirement The loan mod program will help homeowners lower their payments to only 31% of their gross monthly income. Most lenders require a mortgage payment to be no more than 38% of gross monthly income, so the change will make a substantial difference in mortgage affordability.
- Lower Interest Rate The loan mod program will encourage lenders to lower interest rates to an affordable rate, but not lower than 2%.
- Longer Term After the interest rate has been considerably reduced and payments are reduced lower to meet the 31% debt service, a lender may extend the term of the mortgage to up to 40 years and re-amortize over that period.
- Principal Forgiveness Ultimately mortgage lenders are encouraged to forgive a portion of the principal balance. Though the lender must write that portion off, it allows the borrower to reach lower and more affordable payments and avoids the expensive foreclosure alternative.