There are good options available for people who have received mortgage of an FHA loan modification program. According to the housing and economic recovery act, which was passed in 2008, the FHA lender can grant permission and funding to give loan modifications for the homeowners who are going to face foreclosure but think that they are not qualified enough for a loan modification. You can get full details of the terms and conditions of FHA loan and related services at www.loansstore.com.The FHA loan modification enables the mortgage to increase up to thirty years to repay off with a lower, fixed rate of interest for thousands of homeowners, so that they can not only stay in their homes, but also keep it as well. You need to keep in mind a few things in order to be eligible for the FHA loan modification under the program of Federal Loan Modification. They are as follows:
• The home owner has to lack a minimum of three months or more behind on his mortgage payments
• There cannot be any bankruptcy filing by the homeowner currently. The homeowner should neither be bankrupt.
• The homeowner has to stay in a locality or have his residence in an area, which can be covered by the FHA loan modification program.
• The present value of the property cannot be less than 90% of the basic value of the mortgage essentials to have been listed prior to January 1, 2008
A couple of things that can happen during an loan modification help are loan extension for an appropriate time span along with a new rate of interest. The rate of interest can be decreased to a minimum of 3%. There can be an increase in payments when the loans which are paid off get matured or undergo refinancing at a later day or date. Regardless of the type of lender be it FHA or any lender, loan modification is the choice for many homeowners who are going to face foreclosure. The FHA loan receivers are realizing it hard to get modifications on loan.
Immediate steps are being taken to offer home loan modification assistance to homeowner who has a mortgage. The laws for FHA loan modification are very strict under the housing and economic recovery act. The present administration is trying to change this so that each mortgage/loan meets the same standards under the home affordable modification plan. As mentioned previously the property value of the property being lived on will not be lower than 90% of the basic purchase value. There is a fall in purchase value of property to about 50%, which is a big difference from 90%.
Hence, if you happened to have an FHA Streamline Refinance for home and property that you are purchasing has lost its value quickly like others, then also hang on. It is going to be a deal, which you will be able to recover.
