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Angie Ramirez


Last Updated: 12/22/2009

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Gender: Female
Status: Single
Age: 29
Sign: Leo

City: Coronita IE
State: California
Country: US
Signup Date: 7/30/2006
Sunday, March 15, 2009 

Current mood:  hopeful
Category: News and Politics
New Loan Modification changes annoucement March 4th
Lenders will strive to adjust the monthly mtg payment to a 31% DTI (using a combination of rate adjustment (rate will NOT be below 2%), term adjustment and principal reduction) ............................
To participate in the loan modification plan, borrowers must: * have obtained their mortgage before Jan. 1, 2009; * have a primary mortgage of less than $729,500; * live in the property; * fully document their income by providing tax returns and pay stubs; * sign a statement of financial hardship; and * go for counseling if their total household debt - including auto loans, credit cards and alimony - totals more than 55% of their income. …..........
The modification program will be in effect until the end of 2012, but loans can only be adjusted once................................
Officials also unveiled more details on how servicers will modify the loans. First, they must reduce interest rates so that borrowers' total house payments are not more than 38% of their monthly income................................
The government will then subsidize servicers dollar-for-dollar to lower that ratio to 31% - but the interest rate can't go below 2%......................................
The new interest rate would then remain in place for five years, after which it will increase by 1 percentage point a year until it reaches either the original rate or the prevailing mortgage rate, whichever is lower..................................
If rate reductions aren't enough to get payments to 31% of income, a lender can extend the term up to 40 years, or shift part of the principal to the end of the loan at no interest. Servicers also have the option of reducing the loan's balance..........................
Borrowers do not have to be behind on their mortgage, only demonastrate a hardship which may cause them to fall behind.
9:28 PM
 
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