President Obama’s loan modification program is aimed at helping 5 million homeowners get a lower monthly mortgage payment so they can afford to stay in their home.  Funded with $75 billion dollars, the plan features monetary incentives for lenders, servicers and borrowers who successfully participate.  This unique feature will encourage most banks to jump on board, and will help to offer loan modification assistance to many borrowers who have faced opposition from the banks up until now.  Who will qualify for this new loan modification plan and how will it work?  Here is some basic information for interested homeowners:

• Only available for first trust deeds (no second mortgages) on primary residences
• Loan amounts must be $729,750 or less
• You do not have to be delinquent to qualify
• Cannot be in bankruptcy
• Loan must have been originated before January 1, 2009
• Currrent mortgage payment must equal 31% or more of your gross monthly income (including taxes, insurance and HOA)

The new loan modification plan seeks to provide an affordable mortgage payment equal to 31% of the homeowners gross monthly income.  This new target payment can be arrived at by first lowering the interest rate down to as low as 2%, then if more is needed to reach the goal, extending the loan term to 40 years.  Finally, banks may defer or forbear principal if needed to reach the 31% debt ratio requirement.  Homeowners who know how to compute their debt ratio will be able to pre-qualify themselves and speed up the approval process with their lenders.

Interested borrowers will need to supply loan modification forms that detail their income and expenses, as well as provide proof of their income and assets.  Homeowners can learn exactly what is required, and how to complete the paperwork properly by following the directions provided in The Complete Loan Modification Guide.  The new loan modification plan has strict guidelines and documentation requirements, so homeowners who know how to prepare the paperwork properly will get a jump start on getting their application approved.

The Treasury Department has warned homeowners against paying any companies a fee to apply, stating that the program is free to borrowers.  The new loan modification plan is a do it yourself loan modification program and is free of charge.  Homeowners who wish to improve their chances for qualifying should take the time to learn more about the program guidelines, how to pre-qualify themselves, and then be prepared to submit an acceptable loan modification application to their lender.

For more information about Obama’s new loan modification program and to find out how to qualify for this plan, you can order and download The Complete Loan Modification Guide. This is a low cost, easy to read handbook 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. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com