Federal Plan

Can you benefit from President Obama’s federal loan modification plan? This federal program is called Home Afffordable Modification or HAMP for short.  If you are stuck in an unaffordable mortgage and facing a financial hardship situation, you need to learn how to apply and qualify for help using this government program. Here is a basic overview of the guidelines for approval and the terms offered for eligible homeowners.

Guidelines for HAMP Approval:

1. You must live in the home as your primary residence
2. Your loan must have been originated before January 1, 2009
3. The loan amount must be less than $729,750
4. Your current mortgage payment must equal more than 31% of your gross monthly income-including your taxes and insurance, and any homeowners dues
5. Your servicer must be approved to offer this plan by the Treasury Department

Federal Loan Modification Plan HAMP Terms:

• The new modified payment will be targeted to equal no more than 31% of your gross monthly income
• A waterfall process will be utilized to reach the desired payment
• Reduction of interest rate to as low as 2%
• Loan term extended to as long as 40 years
• Principal forbearance or forgiveness if needed to reach the desired payment

Interested homeowners will need to contact their lender and ask to be considered for Obama’s federal loan

Know the 3 critical elements of a hardship letter

modification plan-HAMP.  You will be asked to submit an application that includes a hardship letter explaining your circumstances, a financial statement detailing your income and expenses, and proof of your income.  There is a standard 4 step formula that your lender will use to determine if you fit the guidelines and will be approved for a loan modification.  You can use a software program designed just for homeowners that actually mimics the very same formula.  Simply input your own income and expenses and your debt ratio, new target payment, new interest rate and disposable income are all figured automatically.  You see immediately if you might need to make adjustments to your budget in order to qualify.  You can save hours of frustration and make sure you prepare your application correctly the first time.

APPLICATION TIP: Make sure you know and understand the approval guidelines and then prepare your loan modification forms correctly before contacting your bank. You have a one-time chance for approval, so completing your application and fine tuning your forms before sending them to your lender for review will give you the best chance of success. Avoid mistakes and surprises-learn and prepare, then apply correctly.

Don’t take chances with your HAMP application!  You can get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

Federal Plan

You can learn the standard formula that participating lenders use to determine your eligibility under the Obama Home Affordable Modification Plan. The Treasury Department has mandated that this formula be used when reviewing a borrowers request for a loan modification. Learn this basic 4 step formula and then you will be able to pre-qualify yourself and have a much better chance of getting your proposal approved.

The Treasury Department home rescue plan has some very good benefits for borrowers.  The federal Home Affordable Modification Plan or HAMP, is designed to provide an affordable and sustainable mortgage payment for homeowners who are either delinquent or at imminent risk of becoming delinquent. The first criteria that must be met is an evidence of a financial hardship situation. This could be due to any number of circumstances, but the generally acceptable ones include:

1. Loss in income or loss of income
2. Change in your financial situation
3. Using up your savings and having insufficient cash reserves to pay mortgage and basic living expenses-excluding retirement accounts
4. An Increase in Expenses
5. Excessive monthly debt payments and over extension with creditors-living off credit cards
6. Other reasons for hardship-each situation is unique

The standard formula used by lenders under the Obama HAMP is:

1. Verify the existing payment equals more than 31-38% if the household gross monthly income
2. New target payment that equals 31% of the gross monthly income (can use all household income-including roommates)
3. Arrive at new loan terms to reach that target payment by first reducing interest rate to as low as 2%, extending loan term to 40 years, and deferring or forgiving part of the the principal balance.
4. Verify that the homeowners financial statement information fits the debt ratio and target payment calculation by reviewing their financials

There are 7 basic triggers for acceptance into the HAMP guidelines.  You can use a software program that actually mimics these 7 triggers-included in The Complete Loan Modification Guide is the Loan Mod QUick App software.  Designed just for homeowners, it takes all the guess work out of preparing your financial statement.  Simply input your own specific income and expenses, and you see immediately what your debt ratio, new target payment, new interest rate and disposable income are.  It couldn’t be easier-you know immediately if you need to make any adjustments to your budget before your lender turns you down.

So, the way that you can be sure you have a very good chance of approval is to learn the basics of how to figure your target payment and debt ratio, then fine tune your financial statement and make any necessary adjustments to your budget before you send your proposal into your lender. Take the time to learn and prepare, and you will have a very good chance of getting the help you need and deserve. You can use the very same formula your bank will use when you prepare your own financial statement. It makes sense to fine tune your application so you meet the guidelines. Take advantage of the software program designed for homeowners to do all the calculations for you. Avoid making mistakes that could cost you the approval you need and deserve.

Don’t be frustrated and confused when trying to figure out how to qualify for HAMP.  Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

Your Loan Modification Hardship Letter will explain your family’s current financial position. The federal stimulus plan requires that you be facing a hardship situation in order to be eligible to apply for a loan workout. This very aggressive program-called HAMP- features interest rates as low as 2%, loan terms up to 40 years, and in some cases part of your principal balance may be deferred or forgiven to help you stay in your home.  You don’t want to miss out on this government bailout for homeowners.

Your bank wants to know what has happened in your life to cause the problems.  This is your opportunity to explain to your lender the circumstances that caused the hardship and what steps have been taken to deal with the problem. A compelling Loan Modification Hardship Letter tells the lender whether your family has experienced an “acceptable hardship” and can assure the bank that if given the chance, the home loan payments will be paid on time from now on.

Wondering just what is an acceptable hardship? Here are some of the acceptable hardships:

1. Loss of job or reduction in income 2. Death of the homeowner, spouse or family member 3. Illness of homeowner or family member 4. Divorce or separation 5. Forced job relocation by employer 6. Adjustable rate reset-payment shock 7. increased expenses

But, how do you write a convincing loan modification hardship letter that is concise but also tells the lender everything they should know about your family’s situation? Keep in mind that lenders are inundated with frantic homeowners trying to find an affordable alternative to keep their home. They have heard and seen it all, so here are some tips for a successful Loan Modification Hardship Letter:

• Don’t be too long winded- 1 to 2 pages at the most
• First, describe the hardship and the circumstances that caused it – make sure that you include the approximate time frame that you first began to experience difficulties. This should tie in with any late payments you may have. Establish the connection between the circumstances and any delinquencies
• Explain what steps have been taken to correct the situation
• Provide the lender with your plan to get back on track and stay there
• Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home-provide a few details about your involvement in the community. Briefly tell about your child’s school or sports activities, your church involvement-lenders are concerned about maintaining the integrity of neighborhoods and communities

Millions of homeowners are in the same boat-how you choose to deal with your current situation makes the difference between success and failure. Informed and proactive homeowners can work directly with their lender to successfully lower their rate, modify the term, or reduce principle to arrive at a new lower monthly payment. You don’t need a lot of experience, just some knowledge about the process and how it works-you could save thousands of dollars. Take advantage of a software program designed just for homeowners that does all the calculations for you-avoid costly mistakes.

CAUTION! Writing a convincing hardship letter is just one part of the loan modification application. You will also be asked to show your income documentation and complete a financial statement. Before you contact your lender about a loan modification, get informed and be armed with the insider information and negotiating tips that give you a fighting chance of success. Learn the approval guidelines for the Obama stimulus home saver plan before you complete your application. There is a standard 4 step formula lenders use to determine if you qualify-you can learn and use this very same formula to make sure you fine tune your application and qualify for help.  You can take advantage of the #1 resource for homeowners-the Loan Mod Quick App software actually mimics the federal guidelines for approval.  All you need to do is input your own income and expenses, and all the calculations are done for you automatically.

Don’t feel overwhelmed or confused.  You can get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

Federal Plan

Do you qualify for the federal HAMP loan modification plan?  Just what is debt ratio and why is it a critical part of the application and approval process.  You may need loan modification help to get a lower mortgage payment-and the good news is that help is available if you know how to get it.  $75 billion dollars waiting for eligible homeowners, but you must be able to prove you are qualified and can meet the approval guidelines put in place by the Federal government and your lender. An eligible borrower must meet certain debt ratio requirements, do you know how to calculate your ratios and complete your budget correctly?

The HAMP loan modification plan has standard guidelines in place for qualifying-one is debt ratio.  First off, let’s explain what debt ratio is and why it is important to the banks. Debt to income ratio simply means the percentage of your income going out each month for bills as compared to how much money you earn each month. This is translated into a percentage figure that your lender will review. Every loan modification program has a debt ratio percentage that is acceptable. Most lenders look at 2 ratios-one that is just for your housing expense and one for your overall expenses-including housing. Housing debt ratio for example:

• Income = $3800 gross per month
• House Payment (including property taxes, insurance and homeowners dues) = $1950
• Housing debt ratio = 1950 divided by 3800 = 51.3%

Your debt ratio is the method the banks determine if you can afford to pay the mortgage payment. If your ratio is too low, that can mean that you are not facing a financial hardship situation and do not need a loan modification. If your ratio is too high, then you will be a risk for default in the future. The Federal program implemented by President Obama-HAMP- aims for a 31% modified payment-including taxes, insurance and homeowners dues. This means your new, modified mortgage payment would be reduced so that it now equals just 31% of your gross income. However, if your total debt ratio-including the rest of your bills & expenses-exceeds 52% then you may have to agree to credit counseling.

If you don’t fit into the HAMP loan modification plan then you might qualify for another program.  Most lender guidelines allow for an acceptable range between 38-45% for their proprietary or in house loan modification programs. It is so important to work on your financial statement before you ever call your lender.  What if you  need to make some minor adjustments to your budget in order to fit into the debt ratio requirement? You want to know this ahead of time. Make it easy by using a software program that is designed just for homeowners to help them apply and qualify for the federal loan modification plan, HAMP. All you do is input your own income and expenses and the software calculates it all for you. The debt ratio, new target payment, new interest rate and disposable income are all figured automatically. You can see immediately if you might need to make some adjustments.

Don’t blow this chance at getting the help you need.  When you are able to figure your own ratio and make adjustments to your budget so that you fall within the approval guidelines, you are giving yourself the inside edge you need for quick approval. You only get one opportunity-make sure you understand how to complete your budget, adjust your expenses and are able to meet the requirements for approval.

Feeling overwhelmed and confused? You don’t have to try to figure this all out alone.  Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.

There are options available for borrowers who are facing unaffordable mortgage payments and are at risk of losing their home.  Did you know that struggling homeowners can apply for a Countrywide loan modification using the federally subsidized plan called Home Affordable?  The lender has finalized its agreement with the Treasury Department to participate in this aggressive loan workout program.  What’s involved and how do you apply?

Time is not on your side if you are facing the prospect of delinquent mortgage payments.  Homeowners interested in applying for a Countrywide loan modification will be asked to prepare and submit an application.  Qualified borrowers will have to prove they can meet the standardized approval criteria.  Here are the basics:

1. You must live in the home as your primary residence
2. Your current payment must be more than 31% of your gross monthly income
3. Your mortgage must have been originated prior to January 1, 2009 and be less than $729,750
4. You must have suffered an acceptable financial hardship situation

What will your new loan terms look like and will they help you?  Well, under the terms of this Countrywide loan modification, your mortgage terms may be:

1. Interest rate reduced to as low as 2%
2. Term extended to 40 years
3. Some principal balance may be deferred

While not all homeowners will meet the guidelines, successful candidates will be able to prepare and submit their paperwork so that it clearly demonstrates that they meet the approval guidelines.  Homeowners must prove that they can afford to pay and maintain the new modified payment now and in the future.  President Obama has encouraged homeowners to work directly with the bank to get a loan workout so that foreclosure can be avoided.  Since the lender uses a standard formula to determine if you qualify or not, it just makes sense to learn and use that very same formula when you prepare your own application.

Take advantage of the #1 resource for homeowners, The Complete Loan Modification Guide kit, to help you prepare an acceptable application.  You can follow the step by step directions provided in the handbook, and use the user friendly software, Loan Mod Quick App.  This software actually mimics the 7 triggers for approval under HAMP, so all you need to do is input your own income and expenses and it does all the calculations for you.  Your debt ratio, new target payment, new interest rate, disposable income and more are all figured automatically.  Find out immediately if you fit the guidelines or need to make minor adjustments to your budget to increase your chances of success.  A Countrywide loan modification may be the answer you need to be able to stay in your home-make certain that you submit your application correctly.

Don’t be confused or frustrated trying to figure it out by yourself. Get the help you need to prepare your own accurate and acceptable Countrywide loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier-end the frustration-Visit myloanmodificationcenter.com and order today.