| Do you understand what it takes to qualify for you to | | | | available to maintain your payments. Under the Federal |
| receive a lower monthly mortgage payment? Are you | | | | plan, your payment will be no between 31-38% of your |
| aware of the criteria needed for being approved for | | | | gross monthly income, factoring in your property taxes, |
| loan modification? If you have been wondering if you | | | | homeowner's insurance, and HOA dues. Whatever |
| qualify for President Obama's Federal plan, make sure | | | | that figure is, set your expenses and adjust your |
| you are aware of what the bank's guidelines are in | | | | budget around it. |
| order to be approved, before you apply. According to | | | | Your home must be your primary residence, with your |
| the plan, $75 billion has been set aside to assist eligible | | | | original loan date prior to January 1, 2009. Your |
| homeowners. Unfortunately, not everyone will qualify. | | | | conforming loan limit is $625,500 (previously $729,750 |
| Homeowners must meet all guidelines and criteria in | | | | in 2008). You must also be in a hardship situation for |
| order to qualify for being approved for a loan | | | | your finances, medical or credit debt, job loss, or |
| modification. Knowing ahead of time how to fill out the | | | | adjustable interest rate increases. |
| applications and what to say during your telephone | | | | Ensure you have all the mandatory paperwork ahead |
| interview will improve your chances of receiving the | | | | of time, including your financial statement, bank |
| government help you need. The key is to be as | | | | statements, and proof of income, before you contact |
| prepared as you can, so that you can save time and | | | | your bank to start the application process. And since |
| know exactly what options are possible for you. | | | | you have taken the time to keep accurate information, |
| It is crucial that your financial statement presented to | | | | you will be more likely to have approval for a loan |
| your bank reflects your ability to afford the reduced | | | | modification. However, you can only apply once, so |
| mortgage payments. Alter your budget ahead of time, | | | | take heed. Proper planning is vital to being able to |
| cutting any unnecessary expenses. The bank will want | | | | receive the help you need to afford foreclosure on |
| to see that you are making an effort to improve your | | | | your home. |
| situation the best you can, with the funds needed | | | | |