President Obama has created the federal loan modification program, the Homeowner Affordability and Stability Plan, which is worth $75 billion dollars and will help 7-9 million homeowners save their homes and stop foreclosure. This plan is not for everyone, discover if you qualify for help and how it will benefit you.

Obama’s Federal Loan Modification Program

Who Qualifies:

Every lender that is taking part in the program will look at each modification application individually however the federal Government has several guidelines to determine if someone qualifies for a loan modification program.

• You must live in your home
• Your current loan must fall within the limits: ($625,500 in high cost areas and for other areas it is $417,000)
• Your house payments must be more than 31% of your gross income(Loan modification kits can help with all financial calculation your lender may want to see)
• You must be able to prove your income
• You must currently have some income

What are the Benefits:

For homeowners that qualify these are the benefits that they will be able to receive under President Obama’s Loan Modification Program:

1. Interest rates reduced, target 4.5%, lowest possible 2%

2. Term extended up to 40 years

3. The principle can be reduced

4. $5000 paid by the federal government to the borrower that stays current with their modified mortgage

The governments loan modification program is voluntary, however most lenders have agreed to participate in the program. Thanks to the Homeowner Affordability and Stability Plan there has never been a better time to pursue a loan modification. But with this opportunity there is also the downside that your lender will not have the time or patience to walk you through the process, to get approved quickly for a loan modification you will need to prepare all documentation before you begin the process of speaking with your lender.

To prepare these critical documents you can use a loan modification kit, Obama-LoanModification.com recommends the Do It Yourself Loan Modification kit which provides you with all the forms, document templates and an extensive how to guide.

To learn more about Obamas Loan Modificationand get a free hardship letter return to the home page.