| A loan modification plan offered by Obama promises | | | | government loan workout plan uses a standard |
| to help homeowners modify their mortgages into | | | | formula for determining who will qualify and the |
| low, affordable payments. This plan is funded by $75 | | | | information on the financial statement will be used in |
| billion in stimulus funds and is designed to offer | | | | this formula. |
| government subsidized assistance for those | | | | Homeowners who are not familiar with the |
| borrowers stuck in financial hardship situations and at | | | | government loan modification approval formula may |
| risk of losing their home. Which homeowners are | | | | be helped by using a software program that mimics |
| eligible for this relief? | | | | the federal approval guidelines. The debt ratio, asset |
| Obama Loan Modification Eligibility Guidelines: | | | | ratio, new target payment, disposable income and |
| If you can answer yes to these questions then you | | | | other critical factors are all calculated automatically by |
| may be allowed to apply for help: | | | | simply inputting the monthly income and expenses. |
| | | | Preparing and submitting an accurate and acceptable |
| 1. Are you facing a financial hardship situation making | | | | financial statement will help to ensure the best |
| your mortgage unaffordable? | | | | chance of approval. |
| 2. Do you live in the home as your primary | | | | Many homeowners have been frustrated by the |
| residence? | | | | application process under the government loan |
| 3. Was your loan taken out before January 1, 2009 | | | | modification plan due to a lack of response from their |
| 4. Is your loan balance less than $729,750? | | | | lenders. However, the program's application process |
| 5. Does your current mortgage payment-including | | | | has now been streamlined and it is critical that the |
| taxes, insurance and any HOA dues-equal MORE than | | | | initial paperwork be completed properly in order to |
| 31% of your monthly gross income? | | | | speed up the approval. The federal government is |
| Once these basic criteria are met, the homeowner | | | | now requiring participating lenders and servicers to |
| will be required to prepare and submit an application | | | | respond to a request for loan workout within 30 |
| to determine if they qualify for an Obama home loan | | | | days of receipt of a complete application package. |
| modification. A part of the application is a detailed | | | | The key to a fast and positive answer is to make |
| accounting of the monthly income and monthly | | | | certain that everything required has been prepared |
| expenses-this is called the financial statement. The | | | | and submitted properly. |