In the times of financial crisis the US citizens are turning up to FHA loans. FHA stands for Federation Housing Administration. It is a part of the HUD (US Federal Housing & Urban Development Department). These are secured loans that help you save your home from the foreclosure.
Here are some tips that would help you modify your FHA mortgage loan effectively:
- Do not approach the FHA through any agents or some third party. They would charge you a lot, plus they would lay a bad example in front of the bank.
- In case you want guidance & help from some professional, approach the counselor appointed by the HUD. They would guide you on tips to manage the finances, how to present your case in the best possible manner and would negotiate on your behalf if need be.
- You must have all the documents along with valid proofs & papers in place in order to make the process faster.
- Be very prompt when the bank or the FHA officials contact you. It is ultimately your need to get the loan modified.
- You must know the amount you can afford to pay as the mortgage monthly payments in the long run. For that evaluate the debt income ratio correctly.
- Your credit score matters a lot in this case. It is not that the sub prime loan holders have nothing to look up to. You must be very honest & frank in furnishing the financial details. Further, try to your best to convince the bank that you actually are wiling to pay up the loan amount in full. The things that help in proving your desperation include taking up a part time job along with the full time one, taking up job works in the week ends, the non working people in the house may take up a part time job, etc.
President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure.