The federal loan modification program devised by the Obama administration is specifically designed to help struggling house makers stay in their house and stabilize the housing market. Popularly known as the “Home Affordability and Stability Plan”, the entire federal program is supported by a $ 75 billion stimulus package. But in order to avail the benefits of the federal scheme, borrowers are required to qualify for a modification of their existing home mortgages.
President Obama’s loan modification plan is specifically designed to help struggling house makers stay in their house and stabilize the housing market. Popularly known as the “Home Affordability and Stability Plan”, the entire federal program is supported by a $ 75 billion stimulus package. But in order to avail the benefits of the federal scheme, borrowers are required to qualify for a modification of their existing home mortgages. Thereby, it is imperative for borrowers to have a thorough understanding of the federal loan modification guidelines which could help them to know if they are actually eligible for the government backed plan. Here is some pertinent information that could provide readers with the necessary knowledge for determining their eligibility for the Obama loan modification program.
- The house to be mortgaged should be the primary residence of the applicant and not an investment property. It also takes into account second mortgages.
- Your existing home mortgages should have been sanctioned prior to 1st January 2009.
- The value of your current mortgages should not be exceeding $ 729, 750 for a single unit family home.
- To avail a mortgage loan modification, you are needed to furnish a letter of listed financial hardships along with the reasons for the loss of income.
- Your existing monthly mortgage payments should be more than 31% of your gross monthly income.
- You need to submit a proof of regular monthly income and details of monthly expenses.
- You should not have defaulted on your mortgage payments for more than 30 days for the preceding 12 months.
The loan modification program is absolutely free and hence there are no extra charges to be paid once you qualify for the plan. But there is plenty of legal paperwork involved in the process. The federal government on its part would extend cash incentives of $1,000 to both lenders for 3 years and borrowers for 5 years provided they maintain regularity in making monthly payments, after getting qualified for a permanent mortgage loan modification.
On qualifying for a modification of your home mortgages, borrowers are required to undergo a 90 day trial period and before getting on to a permanent modification of the home mortgage loan, proper legal documentation is needed to be submitted. Considering the complexities involved, it is always better to obtain online loan modification help offered by reputed companies like www.Refinanceitt.com who employ professionally qualified and highly experienced mortgage modification attorneys. This could enable you to get proper guidance and active assistance in preparing the documents which is required when modifying your home mortgages with government aid.
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