Becoming Eligible for a Federal Loan Modification Program

Homeowners, who are under financial hardships and want to become qualified for a federal loan modification program, must be well aware about the eligibility criteria. Below stated, are some of the details that are essential for becoming eligible for a loan modification under the federal scheme. Millions of Americans are trapped under the burden of reducing income levels as well property values. These challenges have made even monthly payments difficult for most. Foreclosure fear is looming large over many. The federal loan modification program helps such worried homeowners to restore their credit. By modifying loan, you can secure your loan with lower interest rates on your present home mortgage and can save your home from being foreclosure. Furthermore, you can save lot of amount in the longer period. However it is essential to become eligible for getting a home loan modification under the federal scheme. Here are a few things to look for to see if may potentially qualify for the government loan modification process.

Are you eligible for a government loan modification?

To be eligible for a home loan modification under the government scheme, an applicant should satisfy the following basic requirements:

• The mortgaged property must be occupied, and the applicant should be currently residing in it.
• The main or the principal balance should not be greater than $729,750 for a one-unit house.
• The mortgage should have originated on or before the first of January, 2009.
• You must have enough income to get an approval for a federal loan modification, such as enough earnings, steady employment with a regular income, last two paystubs copies and copies of the current income tax returns.
• Your existing home mortgage payments must be in excess of 31% of your total earnings and your loan must be owned by Freddie Mac or Fannie Mae.

Formerly becoming eligible for the government loan modification program first, you will be able to get a lower interest rate of 2% for first 5 years. Another advantage is that your overall monthly payments will get lowered to around 31% of your income. Even more, you won't have to pay any fees for implementing these modifications.

Applicant must file the hardship letter stating the reason along with the application at the time of applying for a federal home mortgage modification. At this point you would feel to have the assistance of a loan modification attorney. However, you can avail the expert services of reputed online loan modification companies that would offer you with skilled and knowledgeable loan modification lawyers. This would help you to avail appropriate direction as well as better support which are essential at the time of applying for loan modification plans for your present home mortgages.