Obama’s Loan Modification Plan – Top 5 Questions
If you are facing foreclosure, president Obama has introduced the Homeowner Affordability and Stability plan which could help you get a loan modification and up to $5000 in additional incentives to help you make your monthly payments.
President Obama’s Housing Bailout includes:
• $75 billion loan modification plan
• Refinance program for non-delinquent homeowners
Top 5 Loan Modification Questions
Do I have to be delinquent on my loan to be eligible for loan modification?
No, but borrowers must be able to show that there is a possibility of becoming delinquent on their loan or that the money coming in is not enough to make future loan payments. Those with rising interest rates or ballooning mortgage payments may benefit from Obama’s Housing Bailout.
How do I know if I qualify for a loan modification with President Obama’s plan?
1. The loan must be the first mortgage on the borrower’s primary residence.
2. Borrowers must currently pay over 31% of their total monthly income towards the loan payment.
3. The loan may not be a “jumbo loan” and break through Fannie Mae or Freddie Mac loan standards.
4. You must currently live in your home.
5. You must have a job and be able to prove your income.
What if my mortgage costs more than my property value?
According to President Obama’s Home Owners Affordability and Stability Plan, the amount owed cannot exceed 105% of the home’s current value, and the modification option is only available to those loans owned or guaranteed by Freddie Mac or Fannie Mae. If the loan is owned or guaranteed, borrowers must show that they are not delinquent on the loan and will have no trouble making the new loan payment.
How do I know if my mortgage is owned or guaranteed by Freddie Mac or Fannie Mae?
Complete eligibility details of Obama’s Housing Bailout were released from the White House on March 4, 2009, and borrowers are encouraged to contact their lender to find out if the lender is participating in the program.
Does my lender have to participate in Obama’s Loan Modification program?
No, but the government offers “incentives” to encourage lenders to modify loans. Incentives like: If the lender modifies Sally’s loan, the lender company receives $1000. If Sally does not default on the loan, the lender company receives $1000 each year for another three years as long as Sally keeps her loan current.
To learn more about Obama’s Loan Modification Program you can visit:
http://www.obama-loanmodification.com
This Informative Site Provides You With Valuable Resources Including:
- Top 10 most frequently asked questions about the program
- Up to date guidelines on if you qualify
- Insider tips
- Free sample hardship letter
Article Source: http://EzineArticles.com/?expert=Frank_Stevenson
http://EzineArticles.com/?Obamas-Loan-Modification-Plan—Top-5-Questions&id=2173001
Do you have a Wells Fargo Loan? Learn more about Wells Fargo Loan Modification Through Obama’s Home Affordable Plan
