| Help is available for qualified homeowners when they | | | | determined by using several methods, as needed to |
| apply for the Obama Federal loan modification plan. | | | | reach the goal. These are: |
| This program is funded by $75 billion dollars and will | | | | |
| offer hope and help to almost 5 million homeowners. | | | | 1. First, the interest rate will be reduced to as low as |
| How can you find out if you qualify for this loan | | | | 2%, if that is not enough, then |
| workout plan? Here is some helpful information so | | | | 2. Second, the loan term may be extended to 40 |
| you can get started today. | | | | years, and if still more is required, some |
| The Obama Federal loan modification program is | | | | 3. Principal balance may be deferred-interest and |
| designed to offer low, affordable mortgage | | | | payment free until the home is sold or refinanced. |
| payments to homeowners who meet the strict | | | | You can learn how to compute your own debt ratio |
| requirements for approval. If you understand how to | | | | to pre-qualify yourself for the Obama Federal loan |
| meet those requirements, you will have a much | | | | modification plan. Once you know what is required to |
| better chance of getting the help you need quickly. | | | | meet the target payment, you will be able to |
| The basics of plan call for: | | | | prepare your paperwork properly so that it will have |
| | | | the greatest chance of approval. If you are confused |
| 1. Mortgages that were initiated prior to January 1, | | | | about how to calculate your debt ratio, target |
| 2009 and are less than $729,750 | | | | payment or other qualifying factors, you can use a |
| 2. Primary residences only-no second homes or | | | | software program designed just for homeowners. |
| investment properties (these may be eligible for | | | | This simple to use program will help you prepare your |
| some other type of modification plan-ask your | | | | own accurate and acceptable financial statement. |
| lender) | | | | Simply input your own income and expenses, and all |
| 3. Your current payment must equal more than 31% | | | | the calculations are done for you automatically. You |
| of your gross monthly income-including taxes, | | | | will see immediately if you need to make any |
| insurance and homeowners dues | | | | adjustments to your budget to fit into the program. |
| 4. Second trust deeds are eligible as well | | | | You can avoid mistakes and speed up your approval |
| You do not have to be delinquent on your mortgage | | | | time. |
| to apply, but you must pass an imminent risk of | | | | Being prepared and understanding how to apply |
| default calculation. The Obama loan modification plan | | | | correctly could be the difference between approval |
| is free to homeowners, you can work directly with | | | | and denial. Don't contact your bank until you have |
| your bank. The program will offer a reduction in your | | | | taken the time to learn more about this opportunity |
| monthly payment so that it equals 31% of your | | | | to save your home. This could be the second chance |
| gross monthly income, including taxes, insurance and | | | | you need-our time and effort will be well worth it! |
| homeowners dues. The new target payment will be | | | | |