President Barack Obama knows that homeowners in the US are struggling in this current economy. Foreclosures have increased exponentially, and housing prices have decreased dramatically. A foreclosure can negatively affect the value of a neighboring home by as much as 9%. In many cases, this dramatic decrease in home values has resulted in homeowners owing more on their mortgage than the value of the home and making refinancing impossible. President Obama and his administration are seeking to remedy this problem with the mortgage modification stimulus plan.

The mortgage modification stimulus plan was announced in February and rolled out this month. Due to the fact home values are decreasing, many homeowners do not have 20% equity in their homes. 20% equity is the traditional guideline for mortgage refinancing. President Obama’s mortgage modification plan will ease the way for homeowners to refinance their current mortgage into lower monthly payments they can afford and thus avoid foreclosure. This stimulus plan can help over 5 million homeowners refinance their mortgage and keep them from defaulting by providing incentives to mortgage lenders for using new refinancing guidelines and approving home loans. The theory is that mortgage lenders will be more willing to approve refinances given incentives and less risk to them. They will have more flexibility in coming to affordable monthly payments for homeowners.

The goal of the mortgage modification plan is for mortgage lenders to perform mortgage modifications and restructure the loans. Under new guidelines, the new monthly mortgage payment cannot exceed 38% of the homeowner’s gross monthly income. Furthermore, if the lender lowers the monthly payment to 31% of the homeowner’s gross monthly income, the mortgage lender will receive a dollar for dollar government incentive. This stimulus is much needed relief for homeowners who have recently become unemployed and are barely scraping by. Many homeowners use up to 40-50% of their monthly income to pay their mortgage. The modification of up to 20% would increase their savings every month.

The US Treasury has provided exact guidelines for mortgage lenders to adhere to when refinancing or modifying a home mortgage. For example, a common practice has been for lenders to tack on any missed payments to the principal of the loan, which did not reduce the monthly mortgage payment. Under the new guidelines, this would not occur in a refinancing. Obama’s mortgage modification stimulus plan has the potential to save homeowners millions of dollars.

Depending on how a mortgage refinance is structured, it can either cost the homeowner thousands of dollars, or save them thousands of dollars. A savvy homeowner should learn the basic strategies and costs associated with a mortgage modification to come out ahead, and with money in their pocket

How to Receive President Obama’s Mortgage Modification?

To help homeowners qualify we recommend the Complete Do it Yourself Loan Modification Kit

To learn more about the Obama Loan Modification Plan return to this websites homepage.

The Obama Federal loan modification plan leaves many people with questions:

Is your lender going to participate in the plan?

What do you do if you’ve aready applied for loan modification with a lender and have either been rejected or are still in a holding pattern waiting for a decision?

The answers to these questions are simple and will get you on your way to the lower mortgage payments that will help you save your home.

A great feature of the Obama Federal loan modification plan is the Pay for Success fund, a program that will reward lenders and servicers for offering the plan to borrowers who can qualify for it. This area of the loan modification plan is a stimulus for lenders who have been hesitant to offer load modification workouts to the untold millions of homeowners in financial straits and too loaded with heavy payments to save their homes. In a “how-to loan modification” plan the lenders will receive compensation for loan modification for those who qualify under this program:

• Reward of $1500 to lenders/investors and $500 to servicers to rewrite loans not in deliquency.
• Upfront payment of $1000 to servicers for each qualified modification
• Cash return of $1000 per year for up to 3 years for borrowers who make regular payments.

However, payments will not be given without prior entrance into the program by the lender under the Treasury Department’s guidelines. So this is a big reward if your bank participates in the Obama Federal loan modification plan, an incentive for them to help deserving homeowners.

So what is in this for you, the homeowner? The good news is that if you have been already refused loan modification by your lender or they were not offering loan remediation, it would be in your interest to find out if they are now a participant in the federal program. However, most lenders will now be supporting this plan for qualified borrowers because of the Federal government hand-outs for their participation. So be sure. Don’t delay in contacting your lender or servicer and find out if they are working with the plan. What this means for you is that if they are cooperating with the federal program then they have censored you for qualification despite the fact that you have applied before

This second chance on low monthly payments will allow many borrowers to receive low monthly payments and allow them to keep their home. However, it is up to you to find out the required approval information, the course of action to meeting these guidelines and the proper completion of paperwork. How-to loan information is available for you to get in on the $75 billion dollars earmarked to help.

The Treasury Department warns against paying thousands of dollars to a third party for applying and qualifying for the Obama Federal loan modification program. These are scam-artists. However, you can get how-to loan modification information and the eligibility requirements by following the do-it-yourself guidelines in The Complete Loan Modification Kit.

How to Qualify and Apply:

We recomend the inexpensively priced Loan Modification Kit, however if you are wanting to spend $3000 or more using a lawyer may have advatages to your specific situation.

To learn more about the Obama Loan Modification plan return to the homepage.

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.

With 4 million American homeowners on the verge of losing their homes because of high mortgage payments President Obama’s “Making Homes Affordable” loan modification plan could not come at a better time. A funding of $75 billion will allow the paying of mortgagers, borrowers and service agencies to participate in a plan to keep homeowners in their homes. Below are some prime features of the program and the minimum qualification standards of the borrowers who can participate:

• Homeowner must reside at the home.
• One to four-unit properties can apply.
• Homeowners’ residence must have a balance on the mortgage equal to or less than $729,750.
• One to four-unit properties can have a higher balance owning.
• Mortgage payment, taxes, insurance and home association fees must total more than 31% of the gross monthly wages and income of the homeowner.
• There is no delinquency requirement to apply.
• The mortgagee must not be involved in bankruptcy proceedings.

The Treasury Department is offering the plan for free and is warning homeowners of possible scams where they are asked by unscrupulous people to pay a fee to participate in a loan workout plan. To enable this program to work Obama’s loan modification plan is based on reducing the mortgage payment down to 31% of the gross monthly income of the homeowner. This is calculated by the following set of rules:

• Reducing the interest rate reduction down as low as 2%.
• Extending the mortgage up to 40 years
• Forbearance of the principal to avoid foreclosure.
• Forgiveness of the principal at the lenders discretion.
• Pay-For-Success: This allows paid incentives and other considerations to be given to both lenders and servicers to extend this program to their borrowers.

In addition there is a reward for homeowners who live up to the new modified loan plan. Up to $5000 in reduced principal credits for their mortgage will fast-track them to rebuilding their equity.

Loan Modification Questions to Ask Yourself

• Do you know how to begin the qualification process for Obama’s loan modification plan?
• Do you know how to figure out your debt ratio?
• Do you know how to find out how you can reach your target payment based on 31% of your gross monthly income?
• Do you know how to put all the aforementioned items together in order to qualify yourself before you go to your lender?

To speed up the approval process all of these points must be addressed because acceptance into the plan depends on a complete package with the all the necessary ingredients. Before the process can begin you have to know how to get everything in line so that you can be successful in lowering your loan payments and getting your life back in order in your own home.

All the help you need to understand the Making Home Affordable loan modification plan is available through ordering and downloading The Complete Loan Modification Guide. With the easy-to-understand instructions you will be on the road to qualification into the program and financial freedom. With these detailed directions you will learn:

• How to prepare the loan application like a professional.
• How to calculate debt ratio
• How to prepare detailed financial statements like an accountant.
• How to write a convincing letter that states your financial situation.
• How to present the entire package to the lender.

So begin the steps to securing the ownership of your home. Order and download The Complete Loan Modification Guide.

To continue learning about Obamas Loan Modification Program continue reading additional articles on this site.

President Obama has introduced the Homeowner Affordability and Stability Plan which will save 7 million families from foreclosure. The program is an incredible $75 billion and here is what you need to do to get your piece of the federal bailout.

Are you Eligible for the Homeowner Affordability and Stability Plan

If you follow these guilines there is a good chance you will qualify, however even if you cant answer yes to all the questions below a loan modification will still help you save your house and stop foreclosure.
1. You must be able to provide evidence of your income
2. Obama’s loan modification incentives are not available on a second mortgage
3. Your mortgage payments must be more than 31% of your gross income
4. You must be currently living in your house
5. Your mortgage cannot be greater than approximately $500,000 (this will depend on the area you live in)

The Homeowner Affordability and Stability Plan came into effect on March 4, 2009

With Obama’s Homeowner Affordability and Stability Plan you will be able to:

1. Lower your principal balance!

2. Reduce the interest rate!

3. Change your expensive ARM into a fixed 4.5% rate!

5. Receive up to $5000 for making your modified payments on time!

5. Remove late fees and charges!

6. Stop The Foreclosure Process!

How to Apply:

With the new plan time is important and a luxury you don’t have, the sooner the loan modification process is begun the better your chances are of success. Since the inception of this plan on March 4, 09 there have been millions of people applying, therefore it is essential that when you apply you have all your documents prepared so that your application gets moved through quickly. Loan modifications are free and the best way to stop foreclosure.

To ensure you have all your critical documents prepared correctly you can use the Complete Loan Modification Kit which provides an extensive, easy to read guide and provides all document templates and checklists you will need to save your home!

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

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