Worried about whether you will qualify for a loan modification?  While hundreds of thousands of borrowers have already received lower mortgage payments with Obama’s stimulus plan, not everyone will qualify for a loan modification to lower their payment-so how can you be sure to get your application to the front of the line and have the best chance for approval? Here are 3 Important Qualifications for approval you should know before you apply.

Loan Modification Qualification #1: You must be able to demonstrate to your lender that you have suffered a financial hardship that has made your current mortgage payment unaffordable. There are certain circumstances that lenders will consider as an acceptable hardship situation. Divorce/separation, military service, death of a family member, job loss, reduction in income, medical expenses, illness, incarceration and job transfer are all considered to be eligible for consideration. Loss of equity alone does not.  There are 3 critical elements that need to be covered in an effective hardship letter-you can follow the easy Outline provided in Chapter 10 of the #1 resource for homeowners, The Complete Loan Modification Guide.

Loan Modification Qualification #2: Can you prove to your lender that if given the new lower modified mortgage payment you will be able to afford to maintain it now and in the future? Lenders want to know that you will not be at risk of defaulting again. How can you prove this to them? Make it simple by providing the required financial statements-one Current and one Proposed-so that they will demonstrate your ability to pay the new payment and help convince your lender to grant an approval for your proposed new lower payment.  These two important forms are included when you order The Complete Loan Modification Guide-make sure you practice and make adjustments before you call your lender.

Loan Modification Qualification #3: Be able to submit an accurate, acceptable and complete application to your bank for review and consideration. Your lender will make a decision based in large part on the information you provide to them. Submitting an incomplete and poorly prepared application can result in a denial of the help you need. Be sure you prepare the paperwork properly and then submit everything your lender will need all together in a professional and acceptable loan modification package.  Follow a simple Document Checklist so you don’t leave anything out-provided in Chapter 10 of the best selling handbook for homeowners, The Complete Loan Modification Guide.

Learn how!

These are extraordinary times and more homeowners are faced with losing their homes than at any other time in our nations history. Borrowers who need help cannot wait to be rescued-help is available but you must know how to get it and be prepared to fight for your home. Start now by learning and preparing to submit your program application to your lender to get the help you need and deserve. Billions of dollars in your tax dollars have been allocated for loan modification programs to help stop foreclosures. Don’t miss out on your chance to save your family’s home.

You can get the help you need to apply and qualify for a loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly.

Home Edition Loan Modification Kit with Customer Assist

The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide, your loan mod in a box. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

]]> http://myloanmodificationcenter.com/blog/loan-modification-program-requirements-for-approval/feed/ 0 http://myloanmodificationcenter.com/blog/president-obamas-new-government-loan-modification-plan-top-10-questions-and-answers/ http://myloanmodificationcenter.com/blog/president-obamas-new-government-loan-modification-plan-top-10-questions-and-answers/#comments Sun, 22 Feb 2009 21:21:54 +0000 admin http://myloanmodificationcenter.com/blog/?p=446  

President Barack Obama announced a new aggressive loan modification plan that is backed by a commitment of $75 billion in Federal funds.  The new loan modification program is targeted at 7 to 9 million homeowners currently at risk of losing their homes.  Here are the Top 10 Questions and Answers about Obama’s new loan modification plan for interested borrowers:

New Loan Modification Plan Question #1:  How much will this loan modification cost me?  It is FREE-there is no charge to apply for or get help with this program.  The Federal Government is cautioning homeowners against paying large fees to any companies or firms.  Learn about the differences of working directly with your lender or hiring a company in Chapter 8 of The Complete Loan Modification Guide.

New Loan Modification Plan Question #2:  Do I have to be delinquent on my mortgage payments?  No, the program is for borrowers who are currently delinquent and for those who face the prospect of not being able to pay their payments.  You must be able to clearly demonstrate an acceptable financial hardship situation-you can learn more about how to prove your hardship in an acceptable manner in Chapter 2c of The Complete Loan Modification Guide.

New Loan Modification Plan Question #3:  Who qualifies for The Homeowner Affordability and Stability Plan new loan modification?  Homeowners whose current payment equals more than 31% of their gross monthly income and whose loans are owned or serviced by Fannie Mae or Freddie Mac may be good candidates.  You must live in the home as your primary residence.  Learn more about debt ratio in Chapter 2d of The Complete Loan Modification Guide.

New Loan Modification Plan Question #4:  How do I know if my loan is owned or serviced by Fannie Mae or Freddie Mac?  You can call your own lender or servicer to ask them.

New Loan Modification Plan Question #5:  What if I am already facing foreclosure?  You should act immediately to begin the application process.  The new loan modification program offers lower monthly payments by reducing your interest rate to as low as 2%, extending your loan term, and in some cases reducing your principal balance.  Learn what paperwork and documents you will need to apply in Chapter 3 of The Complete Loan Modification Guide.

New Loan Modification Plan Question #6:  Is my lender required to offer this loan modification?  No, it is a voluntary program-however the Federal Government is offering monetary incentives to banks who participate.  Lenders will receive $1500 and servicers $500 for each modification.  In addition, any bank who receives Federal Bail Out funds, must offer this loan modification plan.

New Loan Modification Plan Question #7:  What if I have already applied for a loan modification with my bank?  If you are already in the process of working with your lender, ask them to be considered under The Homeowner Affordability and Stability Plan.

New Loan Modification Plan Question #8:  I owe more than my home is worth, do I qualify for help?  One of the options available with this new loan modification program is the reduction of your principal balance.  The Federal Government will share in the loss with your bank as an incentive, however, the final decision is made on a case by case basis at the discretion of your lender.  Learn how you can help convince your bank to lower your loan balance in Chapter 2b of The Complete Loan Modification Guide.

New Loan Modification Plan Question #9:  What do I have to provide in order to determine if I qualify for help with this loan modification program?  You will need to gather your paycheck stubs, tax returns, bank statements and complete some financial forms detailing your income and expenses.  You must also provide evidence of financial hardship.  You can get all of the loan modification forms you need, along with detailed directions for completing them, a Document checklist and Stacking Order, and step-by-step instructions for putting it all together in Chapter 3c of The Complete Loan Modification Guide.

New Loan Modification Plan Question #10:  How do I apply for a loan modification under the Homeowner Affordability and Stability Plan?  Interested borrowers need to learn more about the approval criteria, obtain the loan modification application forms and begin completing them properly, gather the other required documents so that they have a complete and acceptable package by March 4, 2009 when the program begins.

This new loan modification program is good news for frantic homeowners faced with foreclosure or default.  Help will be available for borrowers who know how to get it-successful candidates will be able to prove that they meet the approval guidelines by submitting an acceptable loan modification proposal to their lender.

You can get the help you need to understand and apply for the new loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

President Obama unveiled a new loan modification plan that is aimed at helping millions of borrowers stay in their homes and avoid foreclosure.  The $75 billion dollar relief plan is called The Affordability and Stability Plan and is to be effective March 4, 2009.  Will you qualify for this new loan modification program?  Here are some of the requirements that homeowners must meet to qualify:

1. You must live in the home as your primary residence
2. Second mortgages are not covered under this plan
3. You monthly mortgage payment must be 31% or more of your gross monthly income
4. You must be able to prove your income

Which banks are participating?  This new loan modification plan is voluntary and each lender will make a determination regarding which borrowers are eligible.  Homeowners do not have to be delinquent on their loans, however they must show they are or will suffer a financial hardship making their current home loan unaffordable to qualify for this loan modification. 

What should you do if you want to apply?  Interested homeowners will need to begin gathering the required paperwork and completing the loan modification forms so they can apply with their lender.  The new loan modification plan is free, and the Federal government has warned homeowners against paying upfront fees to apply with any company.  Borrowers need to start immediately to learn more about the new loan modification program, learn what documents are required and find out how to complete their applications properly to increase their chance of getting an approval on this new loan modification program.  Help is now available for homeowners who know how to qualify-make sure you are one of the borrowers who get the help they need.

You can get the help you need to understand and apply for the new loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

A loan modification program that offers a reduction in the principal balance is kind of like Big Foot – we hear about it but no one has actually been able to prove it’s existence.  Well, now the Feds are intervening to encourage loan modification programs that will offer principal reductions for borrowers who meet certain qualifications. Here is some important information for homeowners who now owe more than their home is worth and need help with a loan modification program.

The Fed has said that it will give priority to reducing the outstanding loan balance on any loan where the home’s value has decreased by 25% or more.  That is reasonable, as many areas across the country have seen home values plummet 30% or more in the last year alone.  To be eligible for this loan modification program featuring principal reduction, a homeowner must:

1. Live in the home as their primary residence
2. Be able to verify their income and meet approval guidelines
3. Either be delinquent on their mortgage or prove that a trigger event, such as a rate reset or job loss, will cause a payment hardship.

President Obama’s new treasury secretary, Timothy Geithner said that the administration is working on a sweeping program to stablize the banking sector and to address the continuing flood of foreclosures.  This loan modification program offering principal reductions to possibly hundreds of thousands of homeowners is one measure aimed at keeping borrowers in their homes by reducing the loan balance so that it more accurately reflects the homes true market value.  Underwater homeowners need this type of loan modification option to entice them to stay in their home and keep making mortgage payments.

Principal reduction is just one loan modification option, others include a lower interest rate, longer loan term or a combination of all of these to arrive at an affordable and sustainable mortgage payment.  Not all homeowners will qualify for this loan workout, however help is available for those borrowers who know how to get it.  Homeowners who submit an accurate and acceptable loan modification application will be able to increase their chances of success with their lender and receive this type of a loan workout.

Get the help you need to understand how to apply and qualify for a loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Wondering if you might qualify for a loan modification program with your lender to lower your monthly mortgage payment?  Statistics show that 60% of homeowners who apply will qualify for a loan modification program-but what about the other 40%?  Why are some borrowers approved but others are declined?  Learn how to pre-qualify yourself so you have a better chance of success with your lender.

While each bank has their own criteria for approval, there are certain requirements that all banks are looking for.  Here is what a qualified loan modification candidate must do:

1. 1.  Provide evidence of a financial hardship making the current mortgage payment unaffordable-this means you write a convincing and compelling letter describing your circumstances so your lender will get a good idea of your situation.  However, you must also show them that you have taken steps to remedy the situation and have made a commitment to sustained home ownership.  You can get help to write your own acceptable letter when you follow the Hardship Letter Outline and template provided in The Complete Loan Modification Guide.
2. Prove to your lender in black and white that while you cannot afford the current mortgage payment, you will be able to pay the new lower modified mortgage payment if approved for a loan modification program.  You will need to complete financial statements detailing your income and assets and demonstrate your revised budget to convince the bank that you will not be at risk for re-default.  The Complete Loan Modification Guide makes this easy to do by providing you with a Current and a Proposed Financial statement along with detailed instructions on how to complete them properly.
3. Submit a complete, accurate and acceptable loan modification application that includes everything the lender will need to see in order to consider approving your proposal.  Incomplete, missing or inaccurate packages will be set aside and the response will be delayed or can result in a denial.  How can you make sure that you have submitted everything necessary and that you have completed it all properly?  Simple, follow the handy Document Checklist and stacking order you get when you order and download The Complete Loan Modification Guide.

There are millions of deserving homeowners who need help with one of the many loan modification programs available, but unfortunately not everyone will be approved.  Make sure you take the time to learn and prepare before you contact your lender to apply for loan modification help.  Remember, the paperwork and information you provide will in large part determine your eligibility-make sure you give yourself the best chance for success.  When you family’s home is on the line-your time and effort are worth it!

You can get the help you need get pre-qualified and to understand the loan modification process by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Stressed out trying to figure out how you can qualify for a loan modification program with your lender?  If you are stuck in an unaffordable mortgage and need to apply for a loan workout with your bank, make sure you understand how you can improve your chances for approval.  Why are some homeowners approved while others are denied?  Read these 4 main qualifications for loan modification approval that your lender will be looking for.

Qualification #1:  Financial Hardship-you must be able to prove to your lender that you have suffered a financial hardship out of your control that has made the current mortgage payment unaffordable and therefore you need to apply for a loan modification program.  The best way to explain your current situation to your bank is to provide them with a convincing Hardship Letter.  This is your chance to give your lender a snapshot of what has happened in your life that has caused you to become delinquent.  Your Hardship Letter must be descriptive and convincing so that the counselor who is reading it will be touched by your circumstances and be able to relate to what you have gone through.  You can get help to write your own letter by following the Hardship Letter outline and letter template provided in The Complete Loan Modification Guide.

Qualification #2:  Be able to back up your hardship story by providing your lender with documentation that supports your story.  Let’s say you had a medical issue that caused you to fall behind, then provide copies of the medical bills.  If you were laid off work, give them a copy of the notice from your employer.  When you provide hard evidence of your hardship, you are giving your lender a valid reason for approving your application for help with a loan modification program.

Qualification #3:  Prove to your bank in black and white that while the current mortgage payment is not affordable, the new lower modified payment will be manageable now and in the future.  Lenders are concerned that borrowers will redefault even after having received a loan modification.  You need to prove to them that you have implemented a new family budget that is centered around the new modified payment and that you have a strong commitment to continued home ownership.  This can be tricky, but The Complete Loan Modification Guide makes it easy to do by providing you with a Current and a Proposed Financial Statement and gives you step by step instructions so you can complete these forms properly so that your bank will be able to verify your ability to pay the new payment.

Qualification #4:  Provide your bank with a complete and accurate loan modification program application that will meet your lender’s guidelines for approval and includes everything they need to see from you.  Missing or incomplete documents will cause your application to be set aside and you will not get the results you need.  How can you be sure that you have completed all of the forms properly and provided your bank with everything they need to approve your application?  It’s easy when you follow the detailed directions and simple Document checklist provided to you in The Complete Loan Modification Guide.

When your home is on the line, you cannot afford to take any chances or leave it to someone else.  Help is available for homeowners who know how to get it.  You must make the decision to become informed and be prepared so that you can fight for your family’s home.  Billions of dollars of your tax money has been allocated for loan modification programs to help homeowners just like you-do not wait-you need and deserve this help.

Fortunately, you do not have to figure this out by yourself-you can get the help you need to understand and apply for a loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Good news finally for desperate and frustrated borrowers stuck with unaffordable mortgage payments and uncooperative lenders.  Fannie Mae has announced their Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to prevent foreclosure and keep borrowers in their homes.  This streamlined loan modification process is intended to help set standards in the mortgage servicing industry and be a model for other lenders who are designing and implementing loan modification programs.

Fannie Mae has been working with 27 lenders and servicers in the HOPE NOW alliance to implement this streamlined loan modification program.  Under the program, eligible borrowers would be given a loan modification that reduces their monthly mortgage payment for a three month trial period.  If the borrower makes those payments in a timely manner for three months, then the modification will become permanent.   The program is projected to help 10,000 borrowers get back on track each month.

The streamlined loan modification program will reduce the borrowers monthly mortgage payment, including taxes and insurance to an amount equal to 38% of the borrowers gross monthly income.  The changes to the loan terms may include:

1. Adding any accrued interest, escrow advances and costs to the principal balance
2. Extending the loan term
3. Reducing the interest rate in increments of .125%, to as low as 3%.  If the new rate is set below the market interest rate, it will step up in annual increments after 5 years.
4. Forbearance of a portion of the principal, which will deferred to a balloon payment due when the loan matures, is paid off, or is refinanced.

There are certain eligibility criteria which must be met to qualify for this streamlined loan modification program:

1. Conforming conventional and jumbo conforming mortgage loans originated on or before January 1, 2008
2. Borrowers not currently in bankruptcy
3. Only one-unit, owner-occupied, primary residences
4. Current mark-to-market loan-to-value rati of 90% or more

Homeowners will be receiving solicitation letters and it is critical that borrowers respond to these letters to determine if they are eligible for this loan modification program.  Homeowners who do not receive a letter can contact their lender or servicer to inquire about applying for the program.  It is very important for interested homeowners to understand who qualifies, how to complete their loan modification application paperwork properly, and how to submit their proposal so they have the best chance for loan modification approval.

You can get the help you need to understand this loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Really, the bank wants to know one thing-Can the borrower afford to pay and sustain the new lower loan payment if granted one of the loan modification programs.  Unfortunately, a large percentage of homeowners who have already received loan modification assistance have re-defaulted.  This may due to the fact that desperate homeowners accepted terms that were not actually beneficial, or perhaps were victims of the declining economy.  The long term goal of these loan modification programs is to provide an affordable and sustainable payment that will keep the borrower in the home and avert foreclosure.

Before applying for help with one of your lenders loan modification programs, make sure that you have a clear understanding of what their requirements are.  It is pretty hard to qualify for something if you do not even know what the qualifications are.  This is important because the lender will ask for financial statements that detail income and expenses, so these must be completed properly.  Many lenders like to see a small amount of disposable income left over at the end of the month after the new modified payment has been calculated, as assurance there will not be a re-default.  Usually $200-$300 will suffice.

Another important factor in qualifying for loan modification programs is called debt ratio.  Debt ratio is calculated using the total monthly housing expenses divided by the gross monthly income.  Most lenders are targeting the new modified loan payment to be somewhere between 34%-45% of the gross monthly income.  Homeowners are advised to sit down and really determine what an affordable home loan payment would be and find out if that is attainable through a combination of interest rate reduction, longer loan term or even principal forbearance.  Then plan the family budget accordingly so that with the new payment you will meet the lenders guidelines.

Getting help with loan modification programs will take some research and learning about how the process works, but it can be done.  Remember the 3 “P”s-Preparedness, Persistence and Patience.  Prepare by learning as much as possible before contacting the bank.  Learn the guidelines and prepare you application accordingly.  Be persistent, lenders do not easily grant loan modifications and can offer resistance.  Homeowners don’t give up-even if told no the first time-call back and speak with someone else.  This is your home and security-it is worth the effort.  Finally, patience is what will keep you going.  The loan modification process can take up to 180 days, so make a commitment to hang in there until the goal is reached.

You can get the help you need to understand loan modification programs by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender.

 Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

 For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

There are 4 basic options available with Loan Modifications programs.  These are:

• Interest Rate Modification:  the lender agrees to lower the interest rate to make the monthly payment affordable for the borrower.  They may also offer to acccept interest only payments for a pre-determined period of time to lower the payment to a sustainable amount.  The interest rate reduction may be temporary or permanent, depending on the final agreement.  The best option is to negotiate a low, fixed rate for the length of the loan.
• Term Modification:  most loans were written with a 30 year term.  Some loan modification programs offer the option of lengthening the term to 40 years to help lower the monthly payment.
• Principle Reduction:  this is the lenders last resort, as they can stand to lose tens of thousands of dollars.  Basically, the lender analyzes the homes current market value as opposed to the current loan balance.  Many regions have experienced severe property value decreases-leaving many homeowners owing far more on their loan than they could sell their home for.  The lender has a choice of reducing the principle for the homeowner to more closely match the true value, or foreclose and face much higher financial loss.

Most loan modification programs will be a combination of some or all of the above listed options.  Remember, the lender is a debt collector and their job is to lessen the banks losses.  The homeowner must be knowledgeable and informed about their options before contacting their bank about a loan modification program.

An excellent source of information is The Complete Loan Modification Guide.  This low cost Guide will give you the information you need to know to put together a winning loan modification application.  You will learn the 7 Steps to a Successful Loan Modification, as well as invaluable insider tips and negotiating secrets to prevail with your lender.  You will also receive all of the loan modification forms, along with detailed instructions on how to complete them properly.  Before you make a decision costing thousands of dollars and affecting your home and family, make sure you are well armed and prepared.  Give yourself the fighting chance you deserve to save your home.

If you would like more information, please visit us at:

http://www.myloanmodificationcenter.com