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How the Obama Loan Modification Plan Can Lower Your Mortgage Payment

September 1st, 2009 by refinancemortgagerates

Financially strapped homeowners stuck in an unaffordable home loan may be eligible to get help quickly under Obama’s loan modification plan. This Federal program is designed to give borrowers a new low mortgage payment and help them stay in their home. If you are one of the 4 million homeowners facing financial hardship, learn how you can apply and qualify for a loan workout under the Stimulus Plan to lower your payment.

Obama’s loan modification plan is a Federally subsidized program that rewards lenders, servicers and borrowers with monetary incentives for each mortgage that is modified using the standard guidelines. The Treasury Department requires participating lenders to sign a formal agreement that requires lenders to abide by the strict guidelines and methods of Home Affordable Modification.

What does all of this mean to you and how will you benefit using Obama’s home loan modification plan?

If you can meet the minimum screening requirements, you may be eligible to have your mortgage modified to:

  1. Reduced interest rate as low as 2%
  2. Extended loan term to 40 years
  3. Principal deferral or forgiveness

Apply Here…….For this home affordibility plan…!

This program aims to achieve a new modified payment that equals just 31% of the borrowers gross monthly income. The goal is to provided an affordable and sustainable payment and keep the borrower in their home. Not every homeowner will qualify however, you must be able to meet these basic requirements:

  • Live in the home as your primary residence
  • Current payment must equal more than 31% of your gross income
  • Loan amount is less than $729,750
  • Loan originated before January 1, 2009

The application process for Obama’s loan modification plan will involve an application and a telephone interview.

APPLICATION TIP: Do NOT contact your lender to apply until you understand the approval guidelines and know how to prepare your application paperwork correctly. The bank will carefully review the information you provide and make their decision based on what they see and hear from you. Make sure you do not make any mistakes that could be cause for denial. Learn about the guidelines, prepare and fine tune your application so it can meet those guidelines, then contact your bank. You will be confident, prepared and have the best chance of getting the help you need and deserve!

A bad credit mortgage refinance plan can get you out of sticky debt situations. Second Mortgage Loan can also come in handy when the money is tight and most lenders will shy away from lending to you owing to a poor credit rating.

To Get More Info On how to get qualify for no doc refinance or if you have bad credit or poor credit get the bad credit mortgage refinance.

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This entry was posted on Tuesday, September 1st, 2009 at 8:52 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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