| Homeowners just like you might be able to get a | | | | loan modification plan. Lending institutions are not |
| mortgage loan modification under Obama's federal | | | | required to participate in this program, but most are. |
| plan. Most banks and lenders are ready and willing to | | | | There is a very high incentive payment for each loan |
| process all applications for this program, the beauty of | | | | modification that is approved. Homeowners who make |
| which is its aggressive nature when it comes to loan | | | | their payments on time will get a $1,000/year payment, |
| negotiations and powerful incentives to motivate the | | | | applied directly to their mortgage principal, for up to five |
| lender to approve applications. Know all there is to | | | | years. |
| know about this plan before you start calling or writing | | | | Interested homeowners must complete an application |
| your bank so you will maximize your chances of | | | | and prove their income. A financial hardship letter is |
| approval. | | | | also a required part of the package as is a statement |
| $75 billion has been put aside for this program, an | | | | of all your current expenses. How you fill out your |
| amount that will hopefully help almost 5 million | | | | application has a lot of influence in getting a |
| homeowners in the United States. This article lists | | | | modification. It is vital you complete it well so work |
| some important and helpful tips that will increase your | | | | carefully, slowly, asking questions if needed and be |
| chances of getting approved for a lower monthly | | | | very thorough. |
| mortgage payment. | | | | Qualifying homeowners will have their new mortgage |
| This new plan was created for the purpose of | | | | payments reduced to just 31% of their income. The |
| qualifying as many homeowners as possible. The | | | | interest rate may be reduced to as little as 2% and the |
| guidelines for approval are very clear-cut. The secret | | | | term of the loan can be extended to 40 years. Some |
| is preparing properly so your application is considered | | | | principal might be deferred. |
| and possibly approved. Here are the basic | | | | The federal terms are one of the most aggressive |
| qualifications: | | | | mortgage loan modification options for homeowners |
| * You must have negotiated your mortgage before | | | | today. These terms were created to give |
| 2009 | | | | homeowners a manageable monthly payment during |
| * You loan must be for $729,750 or less (some plans | | | | this time of economic crisis. If you want to apply for |
| have a higher limit) | | | | this plan, you need to complete your loan modification |
| * You must live in your home | | | | applications correctly. To improve your plans of being |
| * Your monthly payments must be over 31% of your | | | | approved, read the forms carefully, ask questions of |
| income (including all taxes, insurance or dues) | | | | you need to know something not matter how small. |
| * This must be your first mortgage | | | | This is a second chance for homeowners who are |
| If you meet these requirements, you have a very | | | | trying to avoid foreclosure. Being well prepared can |
| good chance of being approved under Obama's new | | | | make the difference between approval or rejection. |