Stop Foreclosure: Documents Your Lender Needs

Today, Freddie Mac released a new video aimed to help people who are in trouble with their mortgage and wondering about a loan modification titled “Stop Foreclosure: Documents Your Lender Needs To Help You“. With many people right here in Indiana calling their lender about a loan modification for their situation – this video should help explain what is needed. With the crush of phone calls from people inquiring about a loan modification, many lenders are swamped. This video does a good job of helping people be prepared in advance of calling their lender.

Indiana Loan Modification: Documents That Will Be Required

• A copy of your most recent paystubs that show your net take home pay
• Get any other debts you have such as credit cards, car loans, etc and be sure to have the minimum payments and account balances available
• A copy of your last years tax return
• A recent copy of your mortgage statement
• If you have a second mortgage or HELOC, a copy of that statement

Indiana Loan Modification: Don’t Forget The Hardship Letter

In addition to getting the above information, you want to be sure to include in the list a description of what kind of hardship caused you to fall behind on your mortgage payments. This will help speed up the loan modification process. Hardship letters bring out the “human story” that often can make the difference between your loan modification getting approved or denied – so don’t neglect it!

Indiana Obama Refinance To 125% Announced

Today, it was announced by HUD Secretary Shaun Donovan that people who owed more than 105% of what their home was worth could now refinance up to 125% of the home’s value. This is great news to many homeowners in Indiana because now they can refinance up to 125% of the homes value where the prior limit under the Obama Refinance Plan was 105%. The change from 105% to 125% in the Making Home Affordable plan is just another step that the Obama administration is taking to help prevent foreclosures across America.

Both right here in Indiana as well as all over the US, there will now be thousands of people who currently owe more than 105% of their home’s value take advantage of lower rates while they are available. Now, people all across Indiana will be rushing to refinance while rates are low.

According to the story reported in CNN:

“The president’s Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today’s announcement we will extend its reach still further,” said Donovan.

A story at Bloomberg said:

A drop in values has left about 20.4 million of the U.S.’s 93 million houses, condos and co-ops with mortgages higher than the properties are worth as of March 31, Seattle-based real estate data service Zillow.com said in a report May 6.

What This Means For Homeowners In Indiana

While it is difficult to tell exactly how many people in Indiana will benefit from this change, there are surely many people right here in Indiana who will now be able to refinance, where prior to today’s announcement they were locked out. The best way to find out if you qualify under the new Obama refinance rules is to contact your local loan officer in Indiana and ask them – or contact us for more information.