How to Get a Mortgage Loan Modification With Obama's Federal Plan [mortgagedealstips.blogspot.com]
Proposed disclosures The Dodd-Frank Act required the consumer bureau to combine these disclosures into a single set of documents borrowers will get when they apply for most types of real estate loans. Under the proposal, they would have to include any ... Mortgage disclosure forms may be simpler
You may qualify for a mortgage loan modification using Obama's federal plan. Most lenders are ready to accept applications for this aggressive loan workout program, but before you contact your lender, make sure you understand how to improve your chances of qualifying. $ 75 billion dollars has been allocated to fund this program, and approximately 5 million homeowners are expected to apply. Here is some important information that may help you qualify to lower your monthly payment.
The federal mortgage loan modification plan is a standardized program that offers the same terms to every qualified homeowners. There is no negotiating-either you meet the approval requirements or you don't. The secret to approval is to have a general understanding of how to prepare your application so that it has the best chance of meeting those guidelines. Here are the basics required to qualify:
Loan must have been originated prior to January 1, 2009 Loan amount must be less than $ 729,750 (higher allowed for 2-4 units) You must live in the home as your primary residence Your current payment must equal more than 31% of your gross monthly income (including taxes, insurance and homeowners dues) Only available on first trust deeds (second loans do not apply)If you can meet these criteria, then you may be a good candidate for the Obama federal mortgage loan modification program. The program is voluntary, however most lenders are participating. As an incentive, lenders will be paid for each modification completed under this program. In addition, homeowners who successfully pay their new payments on time will be eligible for bonus payments of $ 1000 per year, for up to five years. Those bonus payments will be deducted directly from the loans principal balance to help recapture equity.
Homeowners who want to apply for the mortgage loan modification plan will be asked to complete an application and provide their income documentation. The application will include required loan modification forms that must filled out detailing income and expenses, as well as a hardship letter verifying an acceptable financial hardship situation. How these forms are completed will in large part determine the lenders decision to approve or deny the application. If you can show clearly that you meet the approval guidelines, you will have a very good chance of getting a new lower payment. If you qualify, your mortgage loan payment will be reduced using these methods to acheive a new payment that equals 31% of your gross monthly income:
First, the interest rate will be reduced to as low as 2%, then Term lengthened to 40 years, if more is needed, then Some principal may be deferredThese terms are some of the most aggressive mortgage loan modification options available, and are designed to give the homeowner an affordable and sustainable monthly payment. If you are interested in applying for this plan, take the time to learn a bit more about how to complete your loan modification application forms so that you will have a better chance of approval. This is the second chance that many homeowners need to avoid foreclosure and stay in their homes. A little preparation before contacting your lender could be the difference in success or failure.
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