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Benefits to mortgage modifications

Homeowners who are struggling to pay their mortgage are now having a chance to have their mortgage modified under the new foreclosure prevention program which went into effect on March 4, 2009.   This prevention program was created to help homeowners who are considered delinquent or an at-risk mortgage.  The lenders are encouraged to offer their current borrowers a lower interest rate.  One of the provisions under this foreclosure prevention program is to make sure the interest rates being offered to borrower who is struggling to pay their mortgage does not exceed 31% of the borrowers gross monthly income. 

Since President Obama put the foreclosure prevention program into effect JP Morgan Chase has reported to have issued more than 15,000 loan modifications.  Bank of America did their part by sending out letters to over 100,000 eligible borrowers letting them know of the potential opporitunity to do a mortgage modification. 

If you would like to discuss having a mortgage modification done or regarding any other real estate matter you can contact Steven Decker, Staten Island real estate attorney.