Obamas Loan Modification – Who Does It Help?
The Obama loan modification is the federal government’s answer to the rising need of preventing foreclosures for American homeowners. But, with an allocation of $75 billion, not everybody can apply. Who then can get into the new Obama loan stimulus?
Save Your Home
The aim of the loan modification is to restructure the mortgages of 7-9 million homeowners who were deeply affected by the country’s economic recession. By regulating the restructuring of loans, the federal government encourages borrowers from having to default on their mortgage. At the same time, through financial rewards, lender institutions are also motivated to participate in the government’s stimulus plan.
Here is a basic checklist to help see if you are eligible for the Obama loan modification plan:
1. You should currently be living in your home
2. The modification program includes second mortgages
3. You should have proof of your present monthly income
4. Your monthly house payment should be a total of 31% or more of your income
5. You can still apply for a loan modification if your payments are up to date
6. You do not have to pay for your application into the loan restructuring program
7. Your loan should have been started before January 1, 2009
8. The loan amount should not be more than $729,750
9. You must be having a difficult time keeping up with your monthly house payments
Knowing that you are eligible should be encouragement enough for you to join the Obama loan modification program. So, the next thing to do is to start gathering the necessary documents for your loan modification application.
There are just 3 important things that you, the borrower, should keep in mind, and these are the following:
1. Remember that you must be able to prove that you are facing financial hardship
2. Remember that you must specify your household income and expenses
3. Remember that you must submit the necessary documents
Although the stimulus program is regulated by the federal government, lender institutions are not required to participate in the program. However, to promote the Obama program, the government is offering monetary rewards for the lenders. This is why most banks are offering the home loan modification to their borrowers who are qualified. But before you contact the participating lenders of your choice, take the time to study and understand the guidelines so that you can increase your chances for approval.
With all those incentives for both borrowers and lenders that I mentioned early in the article, the federal government is offering an additional reward for you. Once you get your new modified loan, if you keep it up to date, you will be awarded an additional $1000 annual bonus that will be directly that will be directly used on your mortgage balance for 5 years. This is the time for you to take charge and stop worrying about losing your home.
