President Barack Obama announced a new aggressive loan modification plan that is backed by a commitment of $75 billion in Federal funds.  The new loan modification program is targeted at 7 to 9 million homeowners currently at risk of losing their homes.  Here are the Top 10 Questions and Answers about Obama’s new loan modification plan for interested borrowers:

New Loan Modification Plan Question #1:  How much will this loan modification cost me?  It is FREE-there is no charge to apply for or get help with this program.  The Federal Government is cautioning homeowners against paying large fees to any companies or firms.  Learn about the differences of working directly with your lender or hiring a company in Chapter 8 of The Complete Loan Modification Guide.

New Loan Modification Plan Question #2:  Do I have to be delinquent on my mortgage payments?  No, the program is for borrowers who are currently delinquent and for those who face the prospect of not being able to pay their payments.  You must be able to clearly demonstrate an acceptable financial hardship situation-you can learn more about how to prove your hardship in an acceptable manner in Chapter 2c of The Complete Loan Modification Guide.

New Loan Modification Plan Question #3:  Who qualifies for The Homeowner Affordability and Stability Plan new loan modification?  Homeowners whose current payment equals more than 31% of their gross monthly income and whose loans are owned or serviced by Fannie Mae or Freddie Mac may be good candidates.  You must live in the home as your primary residence.  Learn more about debt ratio in Chapter 2d of The Complete Loan Modification Guide.

New Loan Modification Plan Question #4:  How do I know if my loan is owned or serviced by Fannie Mae or Freddie Mac?  You can call your own lender or servicer to ask them.

New Loan Modification Plan Question #5:  What if I am already facing foreclosure?  You should act immediately to begin the application process.  The new loan modification program offers lower monthly payments by reducing your interest rate to as low as 2%, extending your loan term, and in some cases reducing your principal balance.  Learn what paperwork and documents you will need to apply in Chapter 3 of The Complete Loan Modification Guide.

New Loan Modification Plan Question #6:  Is my lender required to offer this loan modification?  No, it is a voluntary program-however the Federal Government is offering monetary incentives to banks who participate.  Lenders will receive $1500 and servicers $500 for each modification.  In addition, any bank who receives Federal Bail Out funds, must offer this loan modification plan.

New Loan Modification Plan Question #7:  What if I have already applied for a loan modification with my bank?  If you are already in the process of working with your lender, ask them to be considered under The Homeowner Affordability and Stability Plan.

New Loan Modification Plan Question #8:  I owe more than my home is worth, do I qualify for help?  One of the options available with this new loan modification program is the reduction of your principal balance.  The Federal Government will share in the loss with your bank as an incentive, however, the final decision is made on a case by case basis at the discretion of your lender.  Learn how you can help convince your bank to lower your loan balance in Chapter 2b of The Complete Loan Modification Guide.

New Loan Modification Plan Question #9:  What do I have to provide in order to determine if I qualify for help with this loan modification program?  You will need to gather your paycheck stubs, tax returns, bank statements and complete some financial forms detailing your income and expenses.  You must also provide evidence of financial hardship.  You can get all of the loan modification forms you need, along with detailed directions for completing them, a Document checklist and Stacking Order, and step-by-step instructions for putting it all together in Chapter 3c of The Complete Loan Modification Guide.

New Loan Modification Plan Question #10:  How do I apply for a loan modification under the Homeowner Affordability and Stability Plan?  Interested borrowers need to learn more about the approval criteria, obtain the loan modification application forms and begin completing them properly, gather the other required documents so that they have a complete and acceptable package by March 4, 2009 when the program begins.

This new loan modification program is good news for frantic homeowners faced with foreclosure or default.  Help will be available for borrowers who know how to get it-successful candidates will be able to prove that they meet the approval guidelines by submitting an acceptable loan modification proposal to their lender.

You can get the help you need to understand and apply for the new loan modification program by ordering and downloading 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