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How much money will your bank steal from you over the next 10 years?
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AP Photo/Vincent Yu
This is a topic that people in the Portland metro area should be screaming about!
President Obama has allocated hundreds of billions of tax payers dollars to encourage banks to assist home owners struggling with their mortgage payments to provide relief.
The tool that implements this much needed relief is called "The making homes affordable plan" According to this government plan, which is voluntary for banks to participate with, there are an estimated 4 to 6 million people that qualify and about 250,000 people have been helped. Meanwhile we see banks sitting on the government money and giving their top management bonuses.
So how is it that the banks will steal money from you? Easy, if you qualify for a Mortgage Modification and your bank does not, or should I say "Will not" work with you, I say that is tantamount to stealing! They are drinking champagne, flying private jets, and you are trying to determine which utility bill is the most important to pay first. Figuring out if you qualify for this program is where the work comes into play.
Ask yourself these questions to see if you qualify for a mortgage modification:
1. Have you had a hardship?
2. Do you have an income?
3. Do you want to keep your home?
If yes to all three questions, then YES you are a potential candidate for this program.
According to "The Home Mediation Center" a local Portland company that offers a free consultation to help people determine if they qualify, here is an example of who qualifies and what the money in your pocket vs the banks pocket looks like.
"Here is an example of the savings:
Homeowner "Charlie" makes $4000 a month of gross income
His current mortgage payment is: $1850 a month
If you divide 1850/4000= 46%
46% DTI (D= debt T= to I= income)... meaning, he is paying almost HALF of his GROSS income in mortgage payment only. That does not take into account taxes, insurance, utilities.
Under the Obama Plan, the goal is to get the DTI to 31-38%
Meaning, "Charlie" if his mortgage payment was lowered to 31% DTI, his monthly payments would be reduced to: $1240/ month
That's a monthly savings of $610 a month. He will be saving $7320 a year!"
www.hmctoday.blogspot.com
Over 10 years that would be $73,200 either in your pocket or the banks...your choice. This is an electrically charged issue that we will be addressing in upcoming articles.
Scott Schneider
scott.tmms@gmail.com
scott.tmms@gmail.com
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mortgage modification making home affordable
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