Qualifying For A Loan Modification Plan

by

TraceyAvailing a loan modification plan has become difficult these days. No one thought that the action of foreclosure would back fire and adversely affect the housing market. The current recession, hike in the commodity prices, rise in the rate of interest of current debt, and income reduction compelled many indebted homeowners to skip the monthly payments to their creditors or lenders who finally foreclosed their homes. This had a negative effect on the housing market and culminating into the depreciation of the property. Now the situation is such that the debt of many indebted homeowners exceeds the appraised value of the house.

Availing the loan modification program through a lender would have been easy if the properties had appreciated. The depreciation of property has brought the housing market nearly to a standstill and no lender is ready to offer loan modification to the indebted homeowners. Most of the indebted homeowners sought home loan modification to reduce the monthly payment because taking into consideration the current financial circumstances, the monthly payments that were once upon a time affordable, are now exorbitant. Most of the lenders have closed their doors to loan modification. The Obama administration has come to the rescue of the panic stricken home owners by putting forth them the Obama Federal loan modification program. This program comes as a much awaited respite for the debt struck home owners.

Benefits Of Obama home loan modification program

Some of the benefits of this program are reduction in the monthly payment, reduction in the rate of interest, and saving the house from being foreclosed by the creditors or lenders. If you qualify for the Obama home loan modification program the loan can be extended to a maximum terms of 40 years and the monthly payment is going to get drastically reduced giving you a chance to be current on the monthly payment and improve your credit score.

Qualifying for Obama home loan modification program

Qualifying for the Obama federal loan modification program is not a cake walk and never be easy without professional assistance from a reputed service provider or lender. The Obama administration has set aside a fund of $75 billion to promote and assist the availability of this program. This money is going to be offered as incentives for the borrowers who are going to be regular at monthly payments and for the lenders who bring the regular monthly payment payers under the umbrella of this program. Some of guidelines for qualifying for this loan modification program are as follows:

1.The balance loan should not exceed the sum of $729,750

2.The house should be the principal residence of the applicant and neither for investment purpose and nor as vacation home.

3.The first loan should have originated before January 1, 2009

4.The present mortgage monthly payment should be equal to or more than 31% of the gross income of the applicant. The gross income includes the insurance, taxes and charges paid for homeowners association

5.The applicant should not be a part of active bankruptcy

It is better if the applicant is not delinquent on the current loans. For applying for this loan modification program the applicant should submit the filled up application form along with the documents such as the copies of filed tax returns, income proof and other necessary documents.

For more information about the

Federal Loan Modification Program

and other home modification resources, Visit us at

Refinanceitt.com

.

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By Sean Goudeloc

When you live within a very tight budget you will probably experience a great deal of stress and anxiety. Never knowing if you are going to have enough money to pay your bills and take care of your family, indeed, creates a lot of emotional and psychological strain on a person. In fact, this experience can be quite overwhelming for just about anyone and over time it can be almost unbearable. Perhaps this is the reason why some home owners seem to suddenly find themselves facing the possibility of foreclosure: they have ignored the problem too long or have been unable to act out of sheer confusion and frustration.

Whatever the reason may be homeowners who expect they might face a foreclosure need to know that they have other options. Indeed, a foreclosure should always be a last resort. This might lead some people to consider, however, a short sale, but this is not the only thing available. While a short sale might produce an immediate result it is not necessarily the best thing for your credit and will definitely not result in the kind of profit that the most people would desire with the sale of their home.

If you are looking into a short sale or a foreclosure, you might feel that you need to hurry things along. This is particularly true if you have recently lost your job or have taken on an unexpected expense. These are just two of the myriad reasons why people get into trouble with their home loan. Many things can come up in life and force you to have to make very difficult financial decisions that, over time, will be difficult to recover from. While the bank will often work with you if you ask for help eventually you will have to start looking elsewhere for solutions.

Looking elsewhere, though, is actually one of the best things you can do for yourself in terms of selling your home. In regards to your bank, they might not be aware of all the options available to you. They might not have developed and implemented strategies and tools that will help people in your particular situation. They might not have the experience or expertise with the kinds of solutions you need. Unfortunately banks are profitable businesses and so while they do want to create a positive environment for you as a customer, they are not always equipped to help you in the best possible way.

This is why you should consult with the team at SellFastUSA. Founder Allan Garfield started assembling this team several years ago to help him create more possibilities for distressed home owners. With more than 150 years of combined experience, this team can, in fact, sell your home in as little as 10 days while minimizing paperwork and restoring peace of mind. Garfield has more than 20 years of experience himself and because of this he has been able to develop strategies, tools, and relationships, that have helped millions of people over the years.

About the Author: Are you looking for more information on

SellFastUSA

? Visit

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today!

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