Making Home Affordable: Stop Wage Garnishment
For years people have been getting loan modifications, but since the introduction of President Obama’s Making Home Affordable Act, it seems that everyone is talking about them. The process is much more efficient and quicker than it was in the past. If you think a home modification is something you will need, you should learn all about home loan modification hardship assistance and investigate all your options.
If you are experiencing financial problems, don’t put off this investigation. Take control of your situation and discuss your circumstances while you still have some options. You can get advice free from a non-profit organization or you can employ an agency. Free service is proved by HUD-approved organizations. Recently many businesses focusing on helping people access a loan modification have been formed in the last while as this option has become more popular.
Thankfully there are new program available for those who are having financial difficulty with their student loans. This particular article focuses on those in “Default” (minimum 270 days behind) on Federally backed student loans. The Income Contingent Repayment plan or “ICR” consolidates your defaulted student loan(s) into one new loan and a repayment plan with monthly payment based on; your yearly income, family size, and loan amount. As your income rises and falls, so do your payments. Your monthly payment will be re-evaluated annually, based again on your family size, annual Adjusted Gross Income (AGI) as reported on your federal tax return, and the total amount of your restructured loans(s). After 25 years any remaining balance on the loan is forgiven. There are no “prepayment penalties” and if you die, the loan dies with you.
The obvious question is, “what is the interest rate on this new loan, or what’s in it for them?” The interest rates will surprise you considering the risk. Typically interest rates range between 2.5% to 8.25%. The date(s) the loan(s) were taken out, and when the loans were consolidated primarily dictate the interest rate. The ICR is NOT based on credit, so not to worry if your credit is bad. Once the rate is locked it is locked forever. Currently all loans that are variable that were taken out between 7/98-6/06 the interest rate lock is 3.75%. If before 7/98 = 4.5%, and if after 6/2006 the interest rates are from 6-6.8%. All “Parent Plus” and “Grad Loans” are 8.25% regardless of other factors.
If you are finding paying your mortgage bill each month is a source of stress and is taking all the joy out of life, seek Home Loan Modification Hardship Assistance. You can learn more for free here as well as find out how to work with a loan modification service.
Learn more about Obama Mortgage Relief Plan Qualifications.
