Cape Coral Florida's Real Estate Guide

This week, President Obama revealed the details of a loan modification plan that is designed to help struggling homeowners stay in their homes. As part of the recently passed economic stimulus plan, $75 billion dollars has been allotted to reworking troubled loans. It is expected to help as many as 4 million homeowners and stop home values from continuing to plummet. Let's take a look at how you will benefit from this new plan.

If you are a homeowner who is having trouble making payments on your primary residence, you may be eligible for a loan modification. Your occupancy will be verified and you will be required to sign an affidavit of financial hardship. Other requirements include:

• Proof of Income
• The loan must have originated on or before January 1, 2009
• The balance of the loan cannot exceed $729,750.00

If you meet these requirements and your mortgage lender is willing to participate in the program, your payments will be reduced by your lender to no more than 38 percent of your monthly gross income. Then the government will step in with funding to bring your payments down to no more than 31 percent of your monthly gross income. To achieve these numbers, your interest rate will be lowered, your loan term may be extended for up to 40 years, and if needed, your lender will forebear loan principal at no interest. Your lender may also choose to reduce the principal of your mortgage, but is not required to do so under this plan. Contact your lender to see if you can take part in this new plan and save your home from foreclosure.

If you do not qualify to take part in this plan or if you simply are not behind on your mortgage, this plan is still good news for you. Provided that this plan works, housing prices will stabilize. By putting the brakes on further foreclosures, property values can stop falling and even increase. This is good news for those who have been wanting to sell but waiting for the market to calm down. You may be able to put your house on the market and make that move up you have been dreaming about without taking a huge financial hit.

There is something in this plan for everyone. This plan also has a $8,000 first time home buyer tax credit and other incentives for homeowners. For more information on available tax incentives or to buy or sell a home in Cape Coral, contact me today!