Do you qualify for a loan modification under the new Obama Federal plan? This $75 billion dollar program will offer free help to approximately 5 million homeowners. If you are struggling to make your mortgage payment, facing foreclosure or late payments, find out how this plan could help you stay in your home.
Did you know that even if you have been turned down for a loan modification program with your lender you can request to be considered for the new Obama plan? All participating banks will have to review each borrower who requests help to determine if they might be eligible for this new plan. You do not have to be delinquent on your payments to apply, if you are facing an imminent financial hardship due to interest rate reset, loss of income, or higher expenses, you can still qualify to get a reduced monthly mortgage payment.
If you meet these basic guidelines, you can apply for help under the Obama loan modification plan:
- Live in the home as your primary residence
- Mortgage balance $729,750 or less
- Current payment equals 31% or more of your gross monthly income (including taxes and insurance)
- Loan initiated before January 1, 2009
This is a full disclosure process, and homeowners who apply for the Obama loan modification plan will have to supply proof of their income and complete application forms detailing their income and expenses. Each applicant will be reviewed on a case by case basis, so it is very important to make sure your paperwork is complete and meets the approval guidelines.
The Treasury Department is encouraging interested homeowners to begin gathering the required documents now as lenders are expected to be swamped with requests. Remember, this program is free to apply, but you should take the time to learn as much as possible about the process so you can increase your chances of success. This is a second chance for millions of homeowners to get the lower monthly payment they need-don't miss your chance to get your piece of the Obama loan modification plan.
By Susan V. Gregory
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