Are you a struggling homeowner looking for a way out of high mortgage payments?  The federal loan modification plan may be the solution you need.  But before you contact your lender to apply, make sure you understand all the requirements, terms and conditions of Obama’s loan workout program.  Only homeowners who can meet the guidelines for approval, pass a screening process and then submit an acceptable application will be approved for a new lower mortgage payment.

The basic requirements for Obama’s loan modification plan must be met if you hope to continue through the process.  The basics requirements are:

1. Must live in the home as your primary residence
2. Loan origated before January 1, 2009
3. Loan amount less than $729,750
4. Current payment more than 31% of your gross monthly income
5. Facing a financial hardship situation

Once you prove you meet those requirements, you will be asked to submit your loan modification forms and income documentation.  The application includes:

1. 1.  Your Financial Statement: details your income and expenses each month.  This will be carefully reviewed and based on the figures you provide, the bank will determine if you fit the approval guidelines.  Do you know how to prepare your financial statement correctly?  Do you know about disposable income requirements?  You can get step by step directions to complete your forms correctly in Chapter 3 of The Complete Loan Modification Guide. 
2. Borrowers Statement:  your basic information like name, social security number, dependents, job information, etc.  Do not leave any blanks spaces or your file will be delayed.
3. Submission form:  this is where you ask the bank to modify your loan into a payment you can afford.  Do you know how to determine your target payment so it meets the Obama loan modification guidelines?  Find out how to calculate your debt ratio and determine your target payment in Chapter 2 of The Complete Loan Modification Guide.
4. Hardship Letter:  explain to your bank what has happened to make the current loan unaffordable and how you are committed to keeping your home.  There are 3 critical elements to an effective and convincing hardship letter-learn what they are in Chapter 3 of The Complete Loan Modification Guide.

Terms of the Obama Loan Modification Plan:

1. The new payment will equal 31% of your gross monthly income, and to reach this goal, your interest rate may be reduced as low as 2%, term extended to 40 years, principal balance deferred
2. 90 Day Trial Period-you must pay the modified payment on time for 90 days to be eligible for the permanent modification.  If you are late during this time, you will be eliminated from the program.
3. 5 Year Modification Period:  if you successfully pay the first 3 payments on time, the new modified terms will be extended for 5 more years.  Beginning in year 6, you may see your interest rate increase by 1% per year until it reaches that rate cap stipulated in your modification agreement.

You must understand how to meet the approval requirements and what will be expected of you during the process if you hope to be successful.  Only those homeowners who can prove by their application paperwork that they meet the guidelines will be accepted under Obama’s loan modification plan.

The secret to success is to know and understand the requirements, terms and conditions before you contact your lender to apply.  Take the time to work on your financial statements ahead of time-that way you will be able to make the necessary adjustments so you have the best chance of approval.  Once you give the bank your information it will be too late to make changes-you do not want to make a mistake that could mean denial of your application.

You can get the help you need to apply and qualify for Obama’s loan modification plan 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. 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