Since the housing market has seen a steady downward spiral there are many homeowners who are struggling to keep and stay in their homes. However, mortgage modification is becoming more and more available due to President Obama’s stimulus plan. President Obama and his administration have set aside $75 billion to help the thousands of struggling homeowners. When you look for a loan from a lender that participates in this loan modification program they are more likely to help because they get paid incentives from the government whenever they help a needy homeowner get lower more affordable monthly payments.

If you are like thousands of other people facing the possibility of foreclosure getting a loan modification may be just what you are looking for. What are the qualifications you must meet?

·First thing is that you must be in a state of financial hardship. The financial hardship must have been caused by things that were out of your control like unexpected bills from death of a spouse, medical emergency, decrease or loss of income, military service etc. Whatever the reason for your sudden financial hardship it must have been caused by something out of your control.

·The lender you decide to use must be on the government lender list.

·You cannot modify a mortgage loan for a second home it must be a primary residence.

·The total amount you are paying every month including mortgage, taxes, insurance and any association/homeowner dues must be 31% or more of your monthly income.

·The original loan must not be for more than $729,750.

·Your original loan must have been written and signed no later than January 1, 2009.

·You must also prove that once you receive a modified loan you will be able to pay the loan with no more problems.

If you do qualify for a home loan modification you can benefit from lower rates, waived late fees, longer loan term and lowered principle. Applying for a home loan modification can be your solution to your foreclosure problem. Prior to calling an approved government lender take time to familiarize yourself with the process and requirements. This can only increase your chances of being approved for a modified loan. Also keep in mind that this loan modification program from President Obama is only here for a short amount of time, don’t waste any time act now.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner