Don't have an account? To participate in discussions consider signing up or signing in
facebook connect
Sign-up, its free! Close [x]

Benefits

  • okay Create lasting relationships with other like minded women.
  • okay Blogging, let your voice be heard!
  • okay Interact with other women through blogs,questions and groups.
  • okay Photo Album, upload your most recent vacation pictures.
  • okay Contests, Free weekly prize drawing.
  • okay Weekly Newsletter.

+1
Love it

Everyone could use a boost in this economy. Many times when things aren’t going so well we don’t really think about resources that are available to us. It’s not about getting a handout or being lazy. It’s about looking ahead, sustaining your family, and doing what you have to do by any means necessary.

President Obama has come up with a mortgage stimulus plan that can help most everyone. You don’t have to be in foreclosure, late, or have an upside down mortgage. And you still can get your mortgage modified to have a lower interest rate and payment.

If you meet all the qualifications, your lender will then determine how much to lower your monthly payment so it’s about 31% of your gross monthly income. The interest rate could be as low as 2%. The mortgage can be modified only on your primary residence, and there are no fees to the homeowner for modification. Also, there are some financial benefits for the homeowner in the plan. For every month a homeowner makes a payment on time, the Treasury will pay an incentive that reduces the principal balance on a loan. Over five years the total principal reduction could add up to $5,000.

The plan is in effect until the end of 2012 and can only be used once.

Do your research and find out if you qualify to have your mortgage modified. I heard that one guy's mortgage payment went from $1,200 to $750.  

What could you do with an extra $450 a month?

Sharman Lawson a columnist on Fabulously40, and a financial coach, speaker, and author of the book 12 Steps to Eliminate Debt Forever!

+1
Love it


  •  

Member Comments

    • 0 votes vote up vote up

      Lori Aksamit-Stickley wrote May 18, 2009
    • Sharman,

      how do you find out if you qualify?  do you talk to your lender?



            Report  Reply


    • 0 votes vote up vote up

      Mztracy wrote May 18, 2009
    • well we tried to do the plan!

      we cannot as it is only good for the first mortgage, you cannot take out any extra, you cannot combine a 1st and a 2nd. And the man from chase explained the ‘plan’ really only applies to about 2% of the population. frown



            Report  Reply


    • 0 votes vote up vote up

      Sharman G. Lawson wrote May 18, 2009
    • You should go directly to your lender, and they will tell you the website or transfer you to the appropriate person to begin the process. The paperwork is minimal.

      Also, I want to say, the goal in modifying your loan is to reduce your monthly expenses not refinance or take out equity or cash. By having a cheaper mortgage it will free up extra money in your budget to pay down debt, save, and hopefully accelerate payments on your mortgage principle. Haven’t people learned that refinancing and taking out equity is what got people in this financial mess?

      Additionally, if two-percent of the population does qualify, that is around 5 million people. How do you know you won’t be one of the two-percent? You will never know until you try. People that fail to tap into resources and opportunities miss out on blessings.

      Sharman Lawson



            Report  Reply


    • 0 votes vote up vote up

      Lori Aksamit-Stickley wrote May 18, 2009
    • Thanks, Ladies!  I would liek to modify my exisitng loan if I can.  I will call my lender int he morning and let you know how it goes!



            Report  Reply


    • 0 votes vote up vote up

      Mztracy wrote May 18, 2009
    • we tried to combine 1st and 2nd and are not allowed in the the plan. Refinance the two together.  

      Our problem he said was we made pmts on time, never late etc. Seems those of us that did it right, are going to now pay thanks to falling home rates.

      Taking out equity to fix up your home is not wrong to do. What was wrong was the bush regime that got us here by allowing lenders to abuse those they knew could not afford their loans in the future.

      We always get fixed loans, never a variable. And yet, we may end up in trouble because we are not allowed to refinance our 1st and 2nd.  

      This was the reason many banks wanted to send the stimulus back as the ‘rules’ are awful! In this case, the good are getting penalized.



            Report  Reply


    • 0 votes vote up vote up

      Lori Aksamit-Stickley wrote May 19, 2009
    • I called my bank and they are sending me an application to see if I qualify.

      Tracy, I agree with you - us good folks who are making our payments on time but are struggling to do so are the ones getting penalized!  While i realize that I did overextend myself, I have always made my payments, on time and for more than the minimum and have recently been rewarded with reduced credit limits, jacked up interest rates and whatever else becasue the big banks that we bailed out are trying to recoup their losses from good folks (and not so good folks) who are not able to make their payments.  

      I don’t fault the banks for wanting their money, I fault them for the way they are going about it.  I can’t tell you how many horror stories I’ve read and heard from people who have had rates jacked up, credit lines cut or closed (some without their knowledge) all in the name of re-gaining control and re-couping losses.  

      Ok, I’ll get off the soap box now.



            Report  Reply


    • 0 votes vote up vote up

      Mztracy wrote May 19, 2009
    • I so hope you can qualify. We are ok as long as our home does not drop anymore.
      Wishing you luck and sending good vibes your way!!



            Report  Reply




  •         Report  Reply


About this author View Blog » 
author