The Federal loan modification plan is funded by Obama’s Housing Stimulus Plan and aims to offer assistance to over 4 million at risk homeowners.  Eligible homeowners could see their mortgage payments reduced to affordable terms, their loans brought current and foreclosure or short sale averted.  Who will qualify for this help and how do you get started?

The Treasury Department has implemented guidelines which must be followed by lenders to modify loans using the Home Affordable Modification Plan.  Lenders and servicers must be approved to participate, and most of the major lenders are already signed up.  Due to financial incentives paid for each modified loan, most banks are expected to participate and offer the program to their qualified borrowers.  The basic guidelines to determine who might be eligible include:

1. Loan taken out before January 1, 2009
2. Mortgage balance less than $729,750
3. Current payment equals more than 31% of the borrowers gross monthly income
4. Live in the home as your primary residence

If you can answer yes to those guidelines, then you may be qualified for a loan modification under the federal program.  The plan is designed to give borrowers a new affordable and sustainable mortgage payment that equals just 31% of the households gross monthly income.  In order to achieve this goal, several methods will be used:

1. Reduce interest rate to as low as 2%
2. Extend loan term to as long as 40 years
3. Defer or forgive some of the principal balance

Homeowners will be asked to complete some loan modification forms and be given a short telephone interview.  The information provided to the lender by the homeowner will be reviewed and a determination made on eligibility.  Borrowers are only allowed one opportunity under this Federal plan.

APPLICATION TIP:  Do NOT give your financial information to your bank until you have worked on your application and made any necessary adjustments to meet the approval guidelines.  Your financial statement must prove in black and white that you meet the debt ratio requirements and that you have an adequate amount of disposable income each month.

Do you know how to meet the debt ratio requirements and calculate your target payment for a loan modification under the federal plan?  You can use the step by step directions provided in the best selling handbook for homeowners, The Complete Loan Modification Guide.  Chapters 2 & 3 will take you step by step through completing your forms correctly so you have the best chance for approval.  All of the forms you need to work on are provided in Chapter 10.

Those borrowers who can prove they meet the guidelines for approval will get the help they need-those who don’t will be denied.  Taking a little time before contacting your lender to work on your application just makes sense-why take chances when your home is on the line?

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