Federal Plan

Many homeowners have the same question-How does a loan modification work?  What is the procedure to apply and how do you get approved?  if you are worried about losing your home and confused about just how a loan modification works? Yes, there is a lot of information in the news about the federal government offering assistance to struggling homeowners, but how do you know if you may qualify for one of these home retention programs and how do you get started? Here is some basic information that will help you decide if a loan workout is right for you and your family.

Don’t be confused-take the time to learn the facts.  It’s true-the Treasury Department has implemented a loan modification plan that offers financial incentives to lenders and homeowners who successfully modify qualified loans. The program is called HAMP-this stands for Home Affordable Modification Plan. The Fed needed to get involved to encourage banks to really help at-risk homeowners and stop the flood of foreclosures across the nation. The benefit of this program is that now the guidelines and methods of modifying loans is standard. This means that everyone who applies is subject to the same approval criteria. This makes it much easier for homeowners to work directly with their lenders successfully-once you know those guidelines you will be able to prepare your application correctly and have the best chance of approval.

Here is some basic information to get started.  There are 4 main qualifying triggers for HAMP:

1. 1.  Live in the home as your primary residence
2. Your loan was originated prior to January 1, 2009
3. You are facing a financial hardship situation
4. Your current mortgage payment equals more than 31% of the household gross income

Ok- now we get to the important part of applying for a loan modification.  Once you pass these basic criteria, you will be asked to provide detailed information about your current financial situation. The application includes a Hardship Letter explaining what has transpired in your life to make the current mortgage unaffordable. There are 3 critical elements that your bank is looking for in your letter-make sure you include those. Next, the bank will ask for a Financial Statement-this is a detailed accounting of your income and expenses each month. This is really the meat and potatoes of your application and the information you provide on this form will in large part determine whether you are approved. You will also have to provide proof of your income-paycheck stubs, bank statements, tax returns, etc.

There is some good news with the Fed getting involved.  Remember, the approval guidelines are standard and they are available for you to learn. It just makes sense to learn exactly what your bank is looking for, then fine tune your own financial statement so that it closely meets those guidelines. You can save lots of time and frustration by using a software program that actually mimics the HAMP approval criteria-designed just for homeowners this easy to use tool will help make sure your financial statement is accurate and acceptable.

There is no magic or special knowledge required.  A third party will not do a better job than you will.  Here’s the key-understanding how a how a loan modification works is the first step to successfully modifying your own mortgage. Let’s face it-you need to be informed, motivated and persistent to get a loan workout so you can afford to stay in your home. No one is going to do it for you-resolve to get started today. Hundreds of thousands of homeowners have already been helped with HAMP-you can too!

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.