Who will qualify for President Obama’s loan modification program?

Not everyone, but by reading this article your chances will greatly increase.

President Obama’s Affordability and Stability Plan has allocated $75 billion dollars to help homeowners stay in their home. Here are some important pieces of information that can help you apply for and receive some funds.

The new loan modification program will help 7-9 million homeowners avoid or stop foreclosure. The program is voluntary and not every lender will participate in the program. Any lender that receives tax payer funds in the form of this bailout will have to participate and provide loan modifications. Many of the major companies have agreed to work with the administration and support the Homeowner Affordability and Stability plan.

Guidelines to determine if you are eligible for Obama’s loan modification program:

1. Do you live in the home?

2. Is your current loan amount within the Fannie Mae conforming limits ($625,500 in high cost areas and for other areas it is $417,000)

3. Are your current house payments more than 31% of your gross income?(Loan modification kits can help with all financial calculation your lender may want to see)

4. Are you must be able to prove you have current income?

5. Do you currently have a job?

If you answered yes to the above 5 questions there is a good chance you can receive a loan modification under President Obama’s new plan.

To apply for a loan modification under the Affordability and Stability Plan you need to begin gathering the extensive paperwork required and completing forms. Complete Loan Modification Kits can walk you through this process and provide all documents necessary. In addition to the 5 questions above lenders are looking for borrowers that have faced a financial hardship, the financial hardship letter is your initial contact with your lender and it is critical you begin this communication well. The free sample financial hardship letter provided on this site is a great resource. In addition to the hardship letter lenders are wanting detailed financial information including typical monthly income and expenses.

To determine if your lender is participating in Obama’s loan modification program you need to contact them directly or check on their website. There is significant financial incentives in the $75 billion Homeowner Affordability and Stability plan and many lenders are expected to participate.

Receive $5,000 From Obama’s Program:

When you are successful in receiving a loan modification you can receive up to $5000 from the government. This incentive is designed to help motivate people to stay current with their modified mortgages. As you stay current the government will pay your lender directly $1000 for each year, up to 5 years, to decrease your mortgage.

With President Obama’s Loan Modification program now is the time to apply or re-apply for a loan modification. There are going to be millions of homeowners applying for this money and to get your application considered you need to ensure that you have all the proper documentation so that your lender can process your case quickly. Help is now available for borrowers.

To get the help you need in understanding how to apply for a Loan Modification you can order and download the Complete Loan Modification Kit. The kit provides you with an extensive easy to read guide that walks you through all the steps in the loan modification process. It also includes valuable templates which will help you with your financial statements, hardship letter and phone conversations.

Click here to go back to the home page and read more about Obama’s Loan Modification Program