Are you feeling the rising waters of financial trouble? Is your mortgage now almost too much for you to bear? Maybe President Obama’s federal loan modification program can throw you a lifesaver!
If you are struggling under the weight of a now unaffordable mortgage, you should learn more about President Obama’s federal loan modification program. It is funded through the stimulus package and is only available for a limited time.
You need to determine if you qualify, how the terms are arranged, what steps to take to apply. Here is some basic information to help you.
Qualification for federal loan modification:
1. Your home must be your primary residence; you must LIVE there.
2. The mortgage must have been signed before January 1, 2009.
3. The maximum loan amount is $729,750.
4. When you analyze your monthly expenses, counting taxes, insurance and homeowner’s dues, your current total monthly house payment must be more than 31% of your income each month.
5. Your lender must be on a list of approved providers by the Department of Treasury.
The Terms of the Federal Loan Modification Plan
• Your new payment will be under 31% of your total gross monthly income.
• This reduced payment will be achieved using a waterfall process.
• Your interest rate will be reduced to as little as 2%.
• The length of your mortgage will be extended, possibly to 40 years.
• If necessary, you could even receive some forgiveness of Principal, if necessary, to get your payment to where it needs to be.
If you think President Obama’s loan modification plan could be the answer to your financial distress, you will need to contact your lender. It is probable that almost all banks and mortgage providers will participate in the federal program. If your bank or servicer has not been approved, you may still be able to get your application in while they are waiting for notification. There is only a window of time to take advantage of this federally funded loan modification plan, so don’t delay.
The most important thing for you to know is that you can only apply once, so it is important that you deal with an informed lender or mortgage broker. So, it is important to get all your facts, figures and forms completed in alignment with the guidelines before submitting them for review by your lender. There are guides available to help walk you through the application process. Get fully acquainted with the requirements, and apply early. This provides you the best opportunity for success in obtaining a loan modification through President Obama’s stimulus package.
For more information about loan modification, check out: http://1HomeMortgageModification.com/
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