| This is a comprehensive guide to Obama's loan | | | | vacant or condemned.o Bankrupt debtors are not |
| modification program. Discover if you qualify and how | | | | automatically excluded from consideration for a |
| to apply. | | | | modificationo Debtors that are active in a litigation |
| Pooling and Servicing Agreements: | | | | involving the mortgage loan are able to qualify without |
| The guidelines of the Plan represent industry standards | | | | waiving their legal rights.o First lien loans are required to |
| for mortgage loan modifications that are in regular | | | | have an unpaid principle balance less than or equal to: |
| agreements of servicing, including pooling and servicing | | | | - 1 Unit: $729,750 |
| agreements (PSAs) governing private label securities. | | | | - 2 Unit: $934,200 |
| Participating lenders must consider every loan eligible | | | | - 3 Unit: $1,129,250 |
| under the guidelines of the Plan unless it is not allowed | | | | - 4 Unit: $1,403,400 |
| by the rules of the other investor servicing agreements | | | | Procedure for Properties in Foreclosure: |
| and/or applicable PSA. Participating lenders must use | | | | Any action of foreclosure will be temporarily deferred |
| reasonable efforts to take away any ban and obtain | | | | during the trial period or while the debtors are being |
| approvals or waivers from all parties necessary. | | | | considered for other foreclosure prevention |
| Date of Creation for Loan to be Modified: | | | | arrangements. If the Domestic Economical Modification |
| Any mortgage modified under this Plan is required to | | | | or other foreclosure prevention arrangements fail, then |
| have been created on or before January 1st, 2009. | | | | the actions of foreclosure may continue. |
| Plan Termination: | | | | Current LTV: |
| New debtors will be able to join until 12/31/2012. Plan | | | | For the purpose of eligibility, there is no minimum or |
| installments will be made for up to 5 years after | | | | maximum LTV. |
| Domestic Economical Modification entry date. | | | | Loan Type Repudiations: |
| Monitoring will go on throughout the duration of the | | | | Loans can be modified by the Domestic Economical |
| Plan. | | | | Modification Plan a maximum of one time. |
| Conditions:o The domicile must be occupied by the | | | | Subordinate Financing: |
| owner and be a single-family, 1-4 unit property. This | | | | Although subordinate liens are not considered when |
| does include condominiums, cooperative and | | | | calculating the Front-End DTI, they are when calculating |
| manufactured domiciles bound to a foundation and | | | | the Back-End DTI |
| regarded as a real property under state law.o The | | | | Petition of Debtors and Incoming Inquiries: |
| domicile must be the owner's main home as verified | | | | Servicers can continue to follow any established |
| by tax return, credit report, and other official | | | | expressed contractual restrictions regarding the |
| documents like a utility bill.o The domicile may not be | | | | solicitation of debtors for modification. |
| owned by an investor.o The domicile may not be | | | | |