Tulsa Mortgage Modifications
June 6, 2009
Tulsa Mortgage Modifications include Second Mortgages
New Tulsa home loan modifications have been changed by the federal government to now include second mortgages instead of only first time mortgages and even new cash incentives are making Tulsa short sale deals better than ever.
The new modifications allows a few homeowners another chance at a loan modification loan that can help them save their home, many that were turned down due to a second mortgage such as home equity loan or line of credit hindered the process.
Due to these new efforts, homeowners are able to take the short sale route instead of ending up another Tulsa foreclosure statistic.
All loan modifications were created to help make Tulsa real estate loans more affordable, in most cases by lowering the interest rate, lengthen the term of the loan, or by reducing the amount of the principal. These loan modifications loans are not refinancing loans that pay off the old loan with a new refinancing loan.
The Making Home Affordable new second-lien program will give first time mortgage borrowers modified loans that will lower their payments on their second mortgage as long as both lenders for the first and second mortgage are participating in the program.
At this time there are twelve mortgage companies in the program such as Bank of America, Wells Fargo, Countrywide, and Citibank, to name a few.
Eligibility for Tulsa homeowners includes:
- Must be living in the home.
- Unpaid principal balance that is not larger than $729,750.
- A loan originating on or before January 1, 2009.
- A mortgage payment that is more than 31 percent of their gross monthly income; and have
a mortgage payment that is not affordable. - This new program now only lowers the payment, but lending companies can opt to wipe out a second mortgage for a lump-sum payment from the government.
There are also new short sale incentives available that are well worth checking out. A short sale is when the lending company accepts the amount of the sale as full payment on the mortgage. On the other hand, in some cases, the difference between the sale price and the amount left on the mortgage can be taxed, and the homeowner will have to pay the tax amount.
The new short sale incentive provides lenders with a $1,000 payment from the United States Treasury for giving the homeowner the opportunity to sell their home for than the amount owed on the Tulsa mortgage loan and for accepting the amount of the sale as full payment for the loan.
The lending company can also receive $1,000 for accepting a deed-in-lieu transaction. This means the deed will be transferred to the lender instead going through the foreclosure process.
Tulsa homeowners can also receive $1,500 in closing costs by agreeing to a short sales or deed-in-lieu deals. The United States Treasury will also pay up to $1,000 to help stop second mortgages from stopping the deal.
