How to Qualify for the Mortgage Bailout Plan
If you are a US citizens and facing higher interest rate on your home loan, you may qualify for your government’s latest bailout plan. This will freeze your interest rate, and you can avoid getting hit by an adjustable rate mortgage, shortly referred as ARM. You will have to meet a certain criteria to be eligible for the bailout program, better check if you are among the lucky people who can seek a bailout of ARM. Gather your loan information and then compare it with the eligibility criteria to see if you qualify.
Instructions
-
1
ARM or Fixed Rate
Check your mortgage paperwork if you have an ARM or a fixed rate. All home owners who have an ARM can qualify for the latest foreclosure prevention or bailout program announced by the US administration. However, you cannot qualify for it if you have a fixed rate on your mortgage. -
2
Check With Lender
If you cannot be sure yourself if your rate is ARM, meet your lender to know if it is. If your rate is changed any time between 2008 and 201o (Jan 01.-July 01), you can qualify to get the interest rate freezed on your loan. ARM is adjusted on a regular basis since it is linked with change in the interest rates. -
3
Loan Payment
Make sure you have been regular in repayments of your loan. If you have some delinquencies but not beyond 30 days, even if it is an ARM, you can qualify for the bailout program. Check your record of all payments to confirm it, as generally you would know if you have been making loan payment to your lender on a regular basis. This is a plus point in availing the bailout. -
4
Future Budget/Income
Also, you should check if you can afford to make payments on your home loans even if the interest rate is revised in the future. If you do not have sufficient budget and income level to honor all your future home loan payment commitments, you cannot qualify for the bailout program. Be assured this will be evaluated when you apply for the bailout, so do not apply if you cannot meet the payment despite rate raise. -
5
Seek Assistance
If you meet all the requirements to seek a bailout but are not sure to apply or not, call for an assistance from the Neighborhood Assistance Corporation of America or Federal Housing Association. They can help you determine if you qualify for the bailout program. They can also advise you on the application process and submission of all the required documents. You should call them before making a formal application for the bailout.
