bySusan V. Gregory
Do you qualify for a loan modification under the new Obama Federal plan called HAMP? This $75 billion dollar program will offer free help to approximately 6 million homeowners. If you are struggling to make your mortgage payment, facing foreclosure or late payments, find out how this plan could help you stay in your home.
Did you know that even if you have been turned down for a loan modification program with your lender you can request to be considered for the new Obama HAMP plan? All participating banks will have to review each borrower who requests help to determine if they might be eligible for this new plan. You do not have to be delinquent on your payments to apply, if you are facing an imminent financial hardship due to interest rate reset, loss of income, or higher expenses, you can still qualify to get a reduced monthly mortgage payment.
If you meet these basic guidelines, you can apply for help under the Obama loan modification plan:
I have always thought that one man of tolerable abilities may work great changes, and accomplish great affairs among mankind, if he first forms a good plan, and, cutting off all amusements or other employments that would divert his attention, make the execution of that same plan his sole study and business.
—Benjamin Franklin (1706–1790)
Live in the home as your primary residence
Mortgage balance $729,750 or less
Current payment equals 31% or more of your gross monthly income (including taxes and insurance)
Loan initiated before January 1, 2009
This is a full disclosure process, and homeowners who apply for the Obama loan modification plan called HAMP will have to supply proof of their income and complete application forms detailing their income and expenses. Each applicant will be reviewed on a case by case basis, so it is very important to make sure your paperwork is complete and meets the approval guidelines. Borrowers will be asked to complete a financial statement, provide a hardship letter explaining their circumstances and provide their income documentation.
We were trying to find out a sound plan of distributing money; and every time we proposed to distribute it according to personal merit or achievement or dignity or individual quality of any sort the plan reduced itself to absurdity. When we tried to establish a relation between money and character we were beaten. When we tried to establish a relation between money and the dignity that gives authority we were beaten. And when we gave it up as a bad job and thought of leaving things as they are we found that they would not stay as they are.... The only way out of this is to give everybody the same, which is the Socialist solution of the distribution problem.
—George Bernard Shaw (1856–1950)
The federal program is called Home Affordable Modification, and also includes second trust deeds. If you have a home equity line or other second loan on your home, you may be able to receive an interest rate reduction to 1%, and in some case the entire debt may be retired altogether. The Treasury Department is subsidizing lenders 12 cents on the dollar for wiping out the debt. This is to encourage homeowners to stay in their home after a significant loss of equity.
Obama's plan is called HAMP for Home Affordable Modification Plan. It has standard guidelines and will give qualified homeowners an affordable mortgage payment. The goal is to lower the interest rate and/or extend the loan term so that the new monthly payment equals just 31% of the household gross income. This is an important calculation to know-if your financial statement is not filled out correctly then you could be denied based on this calculation. You can use a software program designed just for homeowners that does all the calculations for you-simply input your own monthly income and monthly expenses and you will see immediately if you need to make any adjustments to your budget in order to qualify.
The Treasury Department is encouraging interested homeowners to begin gathering the required documents now as lenders are expected to be swamped with requests. Remember, this program is free to apply, but you should take the time to learn as much as possible about the process so you can increase your chances of success. Avoid mistakes that could cause your application to be denied-take the time to prepare your application correctly. This is a second chance for millions of homeowners to get the lower monthly payment they need-don't miss your chance to get your piece of the Obama loan modification plan. Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn't be easier! Visit loan modification to order today.