Confused about whether you can qualify for a Wells Fargo loan modification to lower your mortgage payment?  Homeowners facing financial difficulties may apply for a loan workout to lower their monthly loan payment to help them to stay in their home.  However, each applicant must complete a loan modification package that will be reviewed for eligibility by the lender.  One of the most important qualifications is called debt ratio-this is a percentage figure that Wells Fargo deems acceptable when calculating your new modified mortgage payment.  Learn what this figure is and how to calculate your own debt ratio to make sure you have a chance at loan modification approval.

Just what is debt ratio?  This is a figure that represents the amount of your gross monthly income that is spent each month on your housing expenses.  It is a simple math equation-total your monthly housing expenses (mortgage payment, property taxes, homeowners insurance, any homeowner dues) and divide that figure by your household gross (before taxes) monthly income.

What is an acceptable debt ratio?  The ratio can vary between programs, but for the federal stimulus plan, which the bank is offering, the target ratio is 31%.  A Wells Fargo loan modification can use a number of options to achieve a new mortgage payment that is affordable and meets the banks guidelines for approval.  This new modified payment is targeted to equal 31% of the homeowners gross monthly income.  This new lower payment can be accomplished by one or more of the following options:

1. Longer loan term up to 40 years
2. Reduction in interest rate-as low as 2%
3. Principal forbearance whereby a portion of the current loan balance is deferred interest free
4. In some instances, principal forgiveness

To help struggling borrowers apply for a Wells Fargo loan modification, the lender has increased its full-time home retention staff by 125% to almost 6,000 employees.  The bank plans to continue adding staff as the demand warrants.  These employees are trained to work with financial troubled borrowers to find a solution that is most appropriate to their circumstances.

Interested borrowers are encouraged to take the time to learn about how to meet the requirements for a Wells Fargo loan modification before contacting the bank.  Homeowners can pre-qualify themselves by learning how to calculate their own debt ratio, how to arrive at a target modified mortgage payment and how to complete the required loan modification forms properly.  Borrowers who submit a complete, accurate and acceptable package to the bank will have a better chance of getting the results the need and deserve.

President Obama is warning homeowners against paying any company or attorney for a loan modification.  Recent statistics are proving that borrowers who work directly with the bank have a much higher success rate.  The lenders do not want to speak with companies who have taken a fee from homeowners-a loan workout is free and can be done by the homeowner without paying anyone.  The secret to approval is to just know the basics-no experience or special knowledge is required.

You can get the help you need to apply and qualify for a Wells Fargo loan modification 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.

Home Edition Loan Modification Kit with Customer Assist

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. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes. 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. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com