Obama's federal loan modification program was initiated to help homeowners who will have a hard time meeting their mortgage payments. These are people who were stuck with high interest loans and cannot get refinancing with their present lender. Millions of Americans require adjustments to their mortgage in order to keep their homes and the plan calls for $75 billion worth of funding. The following is information on the program and explains the loan modification application process.
In essence the Obama federal loan modification program is structured to help homeowners get low mortgage payments that are both affordable and sustainable, meaning that they cannot go over 38% of the gross monthly income of the household. This amount is intended to include insurance, taxes and applicable association dues. As an incentive for lenders and services to come into the program the Treasury department if offering financial rewards for each reworked loan. In addition any lost revenue due to the lower interest rates will be covered by the government. In addition the homeowners who qualify with a loan modification application will be allowed bonuses. This means that they can be paid $1000 a year for up to 5 years to be credited to the loan principle to help re-establish equity.
The lenders in question will be required to go over each request from interested homeowners to make sure they qualify for the Obama loan modification program. Every applicant will have to provide the proper documentation for examination and he or she will be qualified on each individual case. The required documents are as follows:
Required Documents for Obama's Federal Loan Modification Program:
1. Program application form2. Recent proof of wages such as pay check stubs
3. Recent Federal tax return
4. Financial hardship declaration in the form of a letter
The great thing about the President Obama federal loan modification program is that homeowners do not have to be delinquent. In fact lenders will receive bonuses for assisting homeowners who facing hardships but have yet to default on their mortgages.
Because the federal loan modification program is expected to receive a large number of applications homeowners should begin the process immediately. How the system works is that successful applicants are the ones who prove that are now facing financial difficulty or will in the near future that will lead to not being able to make the mortgage payments. In addition they have to meet a debt ratio of 31% of their home income.
To get started on the road to saving your home, homeowners should learn how to get pre-qualified and the proper preparation of their loan modification forms.
To learn more about Obama's Federal Loan Modification Program Program you can visit:
http://www.obama-loanmodification.com
This Informative Site Provides You With Valuable Resources Including:
- Top 10 most frequently asked questions about the program
- Up to date guidelines on if you qualify
- Insider tips
- Free sample hardship letter
Article Source: http://EzineArticles.com/?expert=Frank_Stevenson
http://EzineArticles.com/?Obamas-Federal-Loan-Modification-Program---How-to-Qualify&id=2218308
About the Author
Frank is a loan modification specialist who has helped in the creation of a complete loan modification kit which is available at http://www.foreclosuresmedic.com
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