The Stablility Initiative Will Benefit Loan Modification San Diego Homeowners
Stability Initiative Update:
This initiative aims at providing help to individual families as well as entire neighborhoods by helping reduce foreclosures through a loan modification San Diego program and help to stabilize home prices. It is intended to help homeowners who are struggling to afford their mortgage payments, but cannot sell their homes because prices have fallen significantly.
The goal of this initiative is simple: “reduce the amount homeowners owe per month to sustainable levels.” To accomplish this, lenders are encouraged to offer a loan modification San Diego homeowners payments to be reduced to 31 percent of their income by lowering their interest rate to as low as 2% or by extending the terms of the loan. In addition, lenders can also lower the principal owed by the borrower, with Treasury sharing in the costs.
San Diego homeowners who are current on their mortgages but are struggling can still apply for a loan modification San Diego program. As such, this is one of the few programs designed to help homeowners who may face delinquency soon, but are current at the moment.
The focus of this initiative is on helping families and neighborhoods, investment properties do not qualify. This initiative also includes a number of additional elements and incentives that benefit homeowners and lenders. Homeowners in the states of Nevada, Arizona, Florida and California will benefit the most.
The plan includes:
Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her , he or she can get up to $1,000 each year for five years.
Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they perform a loan modification program and modify at-risk loans before the borrower falls behind. Loan modification San Diego homeowners would benefit from the new streamlined initiatives.
The U.S Treasury link can be found here.
