Federal Plan
Good news for struggling homeowners as Wells Fargo is now accepting applications for loan modifications using the Obama Federal plan called Home Affordable. This is a very aggressive loan workout program that will offer help to between 4 and 5 million at risk borrowers. Here is some information to help you apply and qualify for Obama’s Home Affordable plan with a Wells Fargo loan modification.
Who can apply for this program? Any homeowner facing financial difficulties due to unaffordable mortgage payments may ask Wells Fargo to consider them for approval. This means that even if you have been declined before for a loan modification, or are still in the process you can be considered for this plan. If you can answer yes to these basic requirements, you are a good candidate:
- Your loan was originated prior to January 1, 2009
- Loan balance is less than $729,750
- Your current payment is more than 31% of your gross monthly income (including taxes, insurance and homeowners dues)
Since this is a limited time program with limited government funding, you should begin immediately to work on your loan modification application so you won’t miss out. There will be a high demand from homeowners, and a backlog of applications as Wells Fargo tries to help as many homeowners as possible who qualify.
Know the 3 critical elements of a hardship letter
You will be asked to prepare a budget or financial statement that shows all of your monthly expenses and income to determine if you qualify. How you complete this form will be a big part of the decision to give you the modification or not. As long as you can meet the approval requirements you will be eligible to have your interest rate reduced to as low as 2%, have your loan term extended to 40 years and perhaps have some of the principal balance deferred. The goal is to achieve a new affordable payment that equals just 31% of your monthly gross income. So, for example if your income is $3000, your new payment including taxes, insurance and homeowners dues would go down to $930.00.
If you have two loans on your home, the plan also calls for a modification for the second loan with rates reduced down to as low as 1%. In some cases, the second lien may be retired-meaning eliminated-entirely with a subsidy to the lender from the Treasury Department. This is good news for homeowners who have lost equity and the lower mortgage balance will be a big incentive to stay in their home and continue making payments.
Just make sure that you know how to apply and qualify for this program before you contact Wells Fargo-this loan modification program could be your one-time chance to stay in your home. You need to know what you are talking about before you start giving your information to the bank-you don’t want to make a mistake and not be approved. Remember, as long as you can complete your application and provide the necessary documents that prove you meet the approval guidelines, you will be eligible under this plan. There is not negotiating-either you qualify or you don’t. Make sure you give yourself the best chance to get the low payment you need to stay in your home.
- Home Edition Loan Modification Kit with Customer Assist
You can get the help you need to apply and qualify for this loan modification program by ordering and downloading 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 and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com
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