What Are Senior Citizen Rights to Mortgage Modification?
As you age, responsibilities grow and monthly bills start to pile up. Adulthood is hard, especially if you have mortgage loans to repay. Luckily there are mortgage modification programs available to lower your payments. Here is an overview of senior citizen rights to mortgage modification programs.
Elderly people often find themselves in financial predicaments. Mounting medical bills, pending foreclosure, and unpaid loans plague many elderly citizens. Rather than resort to foreclosure, oftentimes a mortgage modification can help. However, mortgage refinancing can be a bit more challenging under newly implemented regulations governing financial institutions and loans for senior citizens.
Qualifying for Mortgage Modification Programs
It’s not easy to qualify for mortgage refinancing and senior citizens are no exception. In fact, they often run into more roadblocks to getting financial assistance due to living on a fixed income and having limited finances. Here are some of the best options to qualify for a mortgage modification program:
With a fixed income, it’s helpful for seniors to get lower interest rates. Refinancing is a good option in avoiding foreclosure and cashing out on equities. This can provide relief for bills and other living expenses. However, this is not a simple process especially for senior citizens.
If you’re struggling to get refinancing, you can begin with your mortgage holder. It’s often easier to seek help from someone who is familiar with your financial situation. Also, they can make an ideal loan modification that is affordable for you.
If you’re 62 years of age or older, you can attain a loan through your home equity. This means your lender will be the one paying you money while you repay the mortgage by moving, selling your property, or after your death.
You can use the money in medical expenses, lifestyle needs, and improving your home. Don’t worry because your house is still under your name, only after selling it can you pay off your loan. The amount you need to repay will be the total of the money you received, fees and interest.
Federal mortgage program.
If you’ve exhausted the first two options and you still have high mortgage payments, your last option is a federal mortgage program. For instance, you can apply for FHFA’s Streamlined Modification Initiative. It’s a program for homeowners who want to keep their homes.
There are requirements you need to comply with before you get approved. These commonly include having your loan guaranteed by Freddie Mac or Fannie Mae, delinquency of 90-720 days, one year old mortgage, and at least 80 percent loan-to-value ratio.
Most importantly, make sure to read the guidelines before signing an agreement. Know your rights, benefits and how long you can repay your mortgage based on the mortgage loan modification program you applied for.
Tips in Finding the Best Modification Program For You
The first thing you need to consider is the value of your house. You can check out home listing websites to get an idea of how much your home is worth. Determine the exact mortgage amount you need in order to afford your lifestyle, settle medical bills, and pay off loans.
In addition, consider the fees you will need to pay as well as the penalties for paying late. If you can make extra payments, it’s possible to lower your mortgage and reduce the time needed to pay off your loans. Don’t forget the essential papers required by your lender before they approve your mortgage modification program.
Bartifay Law Offices
So, are you now aware of the options you have if you want to apply for a mortgage modification? Bartifay Law Offices can help you choose the best option for your situation.