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The past couple of years have witnessed a dip in the economic status of almost every American. Mortgage debt relief assistance services are giving hand to more than two hundred thousand Americans who could face foreclosure in the upcoming 2 to 4 years. America’s new President has passed a bill that will even spend more on mortgage loan modification programs. Although mortgage loans are on the top priorities of the new bill, credit card debts can also be modified and receive federal funds in some cases.
To qualify for a loan modification program, you have to prove an emergent financial hardship. Loss of jobs, permanent paycheck cut offs and other unpleasant financial happenings should be documented with appropriate lawful papers. Moreover, a loan modification deal usually cannot be completed if the lender is in a state of bankruptcy. Although the federal government is helping some delinquent commercial loans, priority is given to personal loans such as mortgages and other non-profitable loans.
The Presidents new plan is expected to spend more than 10 billion dollars on delinquent debts throughout the next 10 years. The new plan aims at raising the standard of living of Americans, who are tired by loans, which eat up their monthly incomes. The new bill entails that the government will finance mortgage holders to bring down their debt’s monthly payment to no more than 31% of their total monthly income. The new policy will be rewarding borrowers, who modify their loans, with a 1000$ incentive for every year of on time monthly loan payments. On the other side, the government will pay lenders a 1000$ incentive for every completed loan modification agreement.
The new loan modification program enables borrowers to re-amortize their debts over more prolonged periods. Mortgage loans can be re-amortized over 40 years. The new debt modification program can temporarily decrease the interest rates of certain debts. The interest rates are capped for a year or two and then gradually increased on a yearly basis. The solutions are numerous but they all aim at one target; keeping Americans in their homes and preventing eminent foreclosures.
Mortgage debt relief assistance services are offering a new rescue plan for Americans with delinquent loans. The new bill is offering financial aid to decrease the load on many borrowers and mortgage holders. The governments new loan modification program is targeted to relieve the pressure on the standard of living of a high proportion of Americans.
