Did you have an unexpected emergency? Are you stuck with outrageous medical bills? Falling behind on your mortgage payments? Are you concerned that foreclosure is the next step? You may be a good candidate for a Federal loan modification.

When a medical emergency happens no one is ever ready for the aftermath that may follow because of enormous medical bills. This is a financial hardship situation in anyone’s book. Under the Stimulus package President Obama has created anyone in this situation would qualify for the loan modification program.

What is required in order to sidestep foreclosure? Here are some guidelines that will help.

-The home in question must be the primary residence. The amount of time you live in it must be 50% or more.

-Freddie Mac or Fannie Mae must have been the primary lenders and the loan must have been written before January 1, 2009.

-You must be having financial hardship to qualify for the loan modification program. You have had to have no control over how or why you are having problems. It can range anywhere from loss of job, decrease in income, death of spouse, medical bill, military service, etc. You will also need to provide proof of these events.

-The original loan must also not exceed $729,750 and the total of the mortgage, taxes, association dues and insurance must equal more than 31% of your monthly income. If it equals more than 31% of your income it shows that you are struggling to pay your loan.

-You will also have to create a budget that can be presented to the lender that will prove to them that if you are approved you will not default on the new loan. You must show and prove that the new loan and terms will be met easily.

Don’t hesitate to apply, the deadline for the Federal Loan Modification is on December 31, 2012.

-M Petrone

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