In today’s housing market there are millions of homeowners facing foreclosure. However with Obamas new Federal Loan Modification plan there will be many more people staying in their homes. This new plan from the President is a part of the Federal Stimulus Package that was approved earlier. This new part of the package will be funded with $75 billion.

Wondering what qualifications are need to apply? Who will benefit?

-The homeowners’ original loan on the home must have been official on January 1, 2009 or after.

-The home in question must be the person’s primary residence.

-The homeowners’ lender must be an approved lender with the Federal Government.

-The loan must not be larger than $729,750.

-The homeowners’ current monthly mortgage payment must be more than 31% of their monthly income. This would include all property taxes, homeowners’ association dues or insurance on the home that you are required to pay monthly.

-The reasons for the homeowners’ current difficulties must be due to circumstances that were beyond their control i.e. decreased or loss of income, job loss etc.

-The homeowner then must show proof that will show they will be able to handle the new payments without struggling and also that they are committed to the process.

Along with the above requirements the application must also be completely and correctly completed and all paperwork need must be included. A person is only allowed to the new plan one time so it is very important to not mess it up with careless mistakes. Homeowners are advised by experts to review and study the requirements and qualification that are needed with the loan modification or refinancing plan and to complete all paperwork properly prior to contacting ones lender. This is advised because there are many small details that will be needed but are easily overlooked and it can lead to delays on your application or even lead to the denial for the plan.

Once the process is complete and you are approved for the loan modification program your monthly mortgage payment will be less than 31% of your monthly income. This is a result of many different things like lower interest, modified length on the loan, forgiven principle and waived late fees. If you like millions of others all around America are struggling to stop foreclosure take advantage of President Obamas new loan modification plan to help you now. Don’t hesitate to help yourself using the Loan Modification plan can be your answer to finding some piece of mind. Don’t run out of time to apply for the Loan modification plan because it will only be in effect until December 31, 2012.

-M Petrone
www.RefinancingCondo.com

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