| The Obama administration introduced the new | | | | form no more than 31% of your monthly income. So if |
| mortgage loan modification plans on March 4th 2009. | | | | you believe that you are paying more than this on a |
| This can be considered a huge lifeline and helping hand | | | | monthly basis, you have a great chance of qualifying |
| for those of you struggling to make your mortgage | | | | for mortgage loan modification. Usually your lender will |
| repayments. It is expected that the mortgage loan | | | | drop the interest rate on your loan to as low as 2%. |
| modification program will aid up to 9 million American | | | | They may decide to extend the term of your loan to |
| homeowners. In this article i would like to answer some | | | | an absolute maximum of 40 years. They may even |
| of the questions you may have about Obama's | | | | offer you a combination of these 2 things to ensure |
| scheme. | | | | your payment falls within the 31% threshold. |
| 1) In order to qualify for mortgage loan modification, | | | | 4) Unfortunately mortgage loan modification can be a |
| you should have taken your loan out prior to January | | | | complicated process. Due to the huge amount of |
| 1st 2009 and still be living in the property. Your home | | | | applications expected, many lenders are unable to help |
| should also be worth less than $729,750. | | | | borrowers with their paperwork. However, applications |
| 2) The mortgage loan modification plans are intended | | | | that have incomplete paperwork or missing |
| to help borrowers in financial difficulty. Although the | | | | documentation will simply be declined and you will be |
| majority of applicants have either been in arrears or | | | | put to the back of the queue. There are professional |
| facing foreclosure, this is not absolutely necessary to | | | | mortgage loan modification companies that can help |
| be approved. Many lenders would prefer that people | | | | you through the application process, however, you can |
| approach them if they believe they are in financial | | | | expect this to cost you in the region of $1500-$5000. I |
| hardship, this of course may be prior to you falling into | | | | would hazard a guess that if you are struggling to |
| arrears. | | | | meet your mortgage repayments, you are highly |
| 3) Your mortgage payments should be adjusted to | | | | unlikely to have this amount of cash just "lying around"! |