So you are having a hard time paying your mortgage because your interest rate has adjusted higher, your income has fallen or your expenses now make it a hardship to afford your current house payment. The Obama mortgage might be for you.

The Obama mortgage program offers financial incentives to mortgage companies to modify your mortgage that is back by Freddie Mac or Fannie Mae. Your loan can be modified to reduce your housing debt payment (defined as first mortgage, real estate taxes, home owners insurance and association/condo fees) to 31% of your gross monthly income. This can be done by lowering your interest rate to as low as 2% and extending the life of your mortgage to 40 years. Mortgage companies owning your second mortgage can voluntarily opt to reduce or eliminate your second mortgage.

The benefits to you are obvious. You get to repay your loan at more affordable payments and you also can get thousands of dollars taken off of your mortgage balance if you remain current on your payments. You can do this program if you are current on your mortgage or even if you are already in foreclosure and EVEN IF YOU ARE IN BANKRUPTCY OR CONSIDERING BANKRUPTCY. This program applies to fixed and adjustable interest rate loans.

The downside of this program is less obvious. It is still unknown as to how this will effect your current credit score or your ability to get a mortgage in the future. You are required to enter into a "trial period" of 3 to 4 months and provide proof of your income to the mortgage company. During this "trial period" you make the lower payment as is initially determined by your mortgage company based upon the information you provide them, but they will report to your credit bureaus that your are paying on a partial payment agreement. Despite mortgage companies and Freddie Mac and Fannie Mae stating that this should not negatively impact your credit, IT WILL LOWER YOUR CREDIT SCORE for at least the "trial period" until you loan is modified and your are paying under the modified mortgage (at which time you would not be making partial payments, but rather full payments under the modified loan). Will you credit score go back up? It should, but the program is too new to know or be tested.

If your goal is to save your house at any cost, then the Obama loan can be for you. However, this program was supposed to also be for those who are current on their payments to be able to get mortgage modification, but at what cost? Are you willing to risk you hard earned credit score in exchange for making the monthly mortgage payment easier during this tough economic time? Already have a modified mortgage loan and still struggling with debt, but you don't want to declare bankruptcy. Our knowledgeable Wisconsin bankruptcy lawyers can help pay off your debt under Wisconsin chapter 128.

Credit Solutions has helped thousands of people with their finances and we can help you balance these tough issues and help guide you to the right answer for the Obama mortgage or other options available to you in Green Bay, Appleton, Fond du Lac, Milwaukee, Waukesha, Racine, Madison and everywhere in between.
Call 866-872-8363 for your Wisconsin credit solution today!