More bad news for strapped home owners. In a decision announced Nov. 9th, in U.S. District Court in Minnesota, Judge Ann Montgomery found that borrowers don’t have a right to modification loans under the Obama administration’s Making Home Affordable program.
Even if borrowers won’t receive protection under the Constitution for the loan modification process, many will still need to attempt it. A loan modification is much like a mortgage refinance in that it changes the terms of your existing home mortgage to potentially make it easier to continue to pay under new, more difficult financial circumstances. Depending on your lender, you may be qualified for a loan modification if:
- you have experienced a documented hardship or change in financial circumstances
- missed three or more payments (90 days delinquent)
- you own and occupy the property as a primary residence
- you have not filed for bankruptcy
All of these qualifications, as well as your ability to pay off your newly modified loan, will of course need to be documented. You may seek modification from your lender (several major lenders have launched programs), the government’s Making Home Affordable program or programs offered by Fannie Mae or Freddie Mac with the Federal Housing Finance Agency (FHFA).
Related Resources:
You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help
Civil Rights
Block on Trump’s Asylum Ban Upheld by Supreme Court
Criminal
Judges Can Release Secret Grand Jury Records
Politicians Can’t Block Voters on Facebook, Court Rules
