Payment reduction plan
PRP is one of the government reduction plan that help homeowners in preventing foreclosure of their homes. Under this plan, mortgage payments can be reduced to nearly 30%. This principal reduction loan modification is open for those who have defaulted on the mortgage payments and wants to save their home from being foreclosed. Borrowers can also apply for other government mortgage reduction plan and save their home from being foreclosed. Under this plan, both the servicer and the borrower plan to save their home from being foreclosed.
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Home affordable modification plan
If the borrowers property is on the verge of foreclosure than he can easily apply for the HAMP plan. Below given are few conditions that borrower needs to fulfil:
· If the borrower has defaulted on the mortgage payments
· If the borrower’s loan has been originated before January 1st 2009
· The principal balance should not be greater than $729,750
· The total outstanding amount should not be more than 125% of the value of their home.
· Borrowers also have to prove that they are facing financial hardships and thus are defaulting on the loans.
Under this plan, the mortgage payments get reduced to nearly half. The main aim of the government is to bring the payments below 38. This can be done by reducing the interest rate and thereby increasing the loan period or else reducing the principal loan balance. Though, interest rate cannot be reduced here by less than 2 percent.
Payment Reduction Plan- Who All Can Avail Them! http://www.obama-
People who are planning to choose these government mortgage reduction plans should be aware of all these scams. There are many unscrupulous people who really want to make money by looting the borrowers. Thus one should be very careful while choosing the lender. Borrowers can contact online lenders and take their help. They would explain the process thoroughly and help the borrowers in getting the best mortgage deal in the town. Borrowers who wish to avail mortgage reduction plan may visit Obama-loanmodification.