There is a standard formula that Countrywide will 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 workout. Learn this basic formula and then you will be able to pre-qualify yourself and have a much better chance of getting your proposal approved.
The Countrywide Home Affordable Modification Plan 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:
- Reduction in income or loss of income
- Change in the households financial circumstances
- Lack of sufficient cash reserves to pay mortgage and basic living expenses-excluding retirement accounts
- Increase in Expenses
- Excessive monthly debt payments and over extension with creditors
- Other reasons for hardship
Federal Plan
The standard formula used by lenders under the Countywide Home Affordable Modification Plan is:
- New target payment that equals 31% of the gross monthly income (can use all household income-including roommates)
- 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.
- Verify that the homeowners financial statement information fits the debt ratio and target payment calculation
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 get the help you need to apply and qualify for a Countrywide 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. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes. 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. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com
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