Pressemitteilung

In this economy millions of people are facing financial hardship due to unemployment, heightened costs of living, and unrealistic monthly mortgage payments. Making Home Affordable program was developed by Obama administration to help ease economic burdens. The goal of this plan is to assist millions of home owners who may be eligible to do a loan modification.
Currently the lenders are overloaded with application from home owners. Homeowners who want to get qualified and approved should begin the process immediately. Homeowners need to prove that they are facing financial hardship or will be facing hardship in the near future which might cause them to miss their mortgage payment. It is also critical that they meet a debt ratio of 31% of their income. Billions of dollars have been allocated to help homeowners facing financial hardship just like you-don't get your mortgage payment reduced. Keep in mind whether you're qualified or not, the loan modification approval process can take some time so do not stop making your payments.

Qualify for mortgage loan modification and prevent foreclosure now!

Before knowing if you qualify for Obama's home loan modification plan or not, let's try to understand what is Obama's home loan modification plan?

The program can be divided into two parts:
Part I: Homeowners who are facing foreclosures due to delinquency in their mortgage payment and may default on paying the home loan the government will give the banks financial incentives to "modify" or alter the existing mortgage by either resetting the interest rate, payment deferment for a particular period of time or readjustment of principal amount.
Part II: Under this program the homeowners who are paying the mortgage payment but cannot refinance because their home equity has come down, government will provide incentive to the lenders to help the homeowners refinance so that they can pay lower monthly payments.
Both the programs have their own set of caveats for homeowners to qualify. The plan is in effect till 2012 and can be availed only once. To qualify under Obama's home loan modification plan, besides having an income enough to cover the modified mortgage payment after covering your household expenses, homeowners must meet following criterion:

• You must have secured your loan before Jan1, 2009.
• Your primary mortgage should be less than $729,500
• You must be living on that property. The plan is not for home owners who have purchased the property only for investment purposes and are not living on it.
• Your income along with the tax returns and pay stubs should be fully documented in the application submitted to the lender. However each lender might have their specific requirements that you must adhere to.
• You must furnish a financial hardship document to the lender before your secure a loan modification
• Must attend HUD certified counseling if your total household debt exceeds the income by 55%

RefinanceITT can help you to stop foreclosure.

Find out Here If You Qualify for Obama’s Loan Modification Plan >>

If as a homeowner you meet all the above qualification then the lender would assess based on your application, your reduced monthly payment could be about 31% of your gross monthly income and the interest rate could be as low as 2%. The home loan modification scheme is free of cost for the homeowners however if the lender has reduced the monthly principal payment as a result of modification, the homeowners might have to pay a big lump sum even after they have paid off the loan, sold the property or refinanced. The financial incentive to the lender is that for every month that a homeowner makes timely payment, treasury will pay an incentive to reduce the principal balance on the loan. With no trial period for this loan modification scheme, say homeowner pays the mortgage on time, the lender get $1000 each year from treasury so over a five year period this could add up to $5000 per loan modification scheme for the bank.
Here are some tips to get your loan modification approved fast under the Home Affordable Program.

1. Prepare an effective hardship letter. One of the qualifications is that the homeowner should be facing financial hardship. If you are not facing hardship you might not qualify.
2. Collect all your documents required for applying before calling the lender.
3. Have your financial worksheet prepared according to the lenders guidelines. This is one of the most critical forms which need to be prepared the right way. Too much surplus or negative surplus income can get your application declined in minutes.

There is help available to homeowners who know how to get the package prepared correctly. Have you thought why some people get denied for home loan modification while others are qualified and approved? The secret to get qualified and approved for Making Home Affordable loan modification program is to know the lenders qualifications and guidelines for approval before you submit your application.