The  loan modification program is in full swing with more homeowners being approved for a lower mortgage payment each month.  The government sponsored plan offers interest rates as low as 2% and affordable monthly payments that help homeowners avoid foreclosure and keep their home.  However, not every borrower will LOAN MOD APPROVAL REQUIREMENTS:

  1. You must live in the home, this plan is not for rental or second home properties.
  2. Your loan amount must be less than $729,750 and your loan taken out prior to January 1, 2009
  3. Your current housing expense must be greater than 31% of the gross monthly household income
  4. This program is for first liens only, but once the first lien is modified, your second lien will automatically be eligible for an interest rate reduction too
  5. A Waterfall Method of Modification is used to achieve a new target payment-lower interest rate to 2%, increase loan term to 40 years and finally reduce principal balance if needed.
  6. Borrower must provide proof of income and meet the program guidelines for monthly income, monthly expenses and cash flow and asset ratio requirements.  This information can be checked ahead of time by running your monthly budget through the Loan Mod Quick App calculator to make sure it is passing.


Loan Mod Help

  1. Homeowners must prepare and submit the RMA-Request for Modification and Affidavit.  This form includes a detail monthly budget worksheet with the borrowers income, expenses and bank balances.  This information is used to determine if the homeowner meets the program guidelines and the loan can be modified using the Waterfall Method of Modification.
  2. The program is designed to give borrowers an affordable and sustainable mortgage payment that equals 31% of the household gross monthly income.
  3. Over 90% of all lenders have signed a contract with the Treasury Dept to participate , and they are paid for each completed loan workout.
  4. Homeowners receive $1000 per year for five years to successfully maintain the modified payments-this bonus is deducted from the principal balance, helping regain some lost equity.

Guidelines Met!

Homeowners who want to apply need to take a few hours to become familiar with the program details, and learn how to complete the loan modification RMA form correctly in order to have the best shot at qualifying for a lower mortgage payment.

Get help to apply and qualify for a loan modification-use the #1 resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Quick APP calculator.  Detailed directions, required forms and a

Download immediately!

calculator that mimics the federal guidelines for income, expenses and assets.  Avoid mistakes and be sure you meet the program criteria, visit today for more information.

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