It's all around the news and the hot topic of conversation over the nation-President Obama's stimulus plan to save the United states homeowner. But what is a federal loan modification and may it help your family? The hype can overshadow the reality, so let's take a minute to really discover just who qualifies, how the plan works and also the benefits to struggling homeowners.
A federal loan modification program called Home Affordable has been offered by most lenders and servicers at the actual strong urging of President Obama. He has stated a goal to have every borrower who's facing the possibility of losing their home have the opportunity to apply and qualify for a loan workout. To create that process easier and more streamlined, the Treasury Department has setup a standard guideline that all lenders use to find out who qualifies.
Using the federal loan modification recommendations, a borrower is can meet certain criteria will qualify for:
- Reduction in interest rate to as low because 2%
- Longer loan terms-up to 40 years
- Primary forgiveness or deferral
These methods will be utilized in that order to arrive at a new modified mortgage payment that equals just 31% from the household gross monthly income. That figure is known as a target payment, and that includes your month-to-month homeowners insurance, property taxes and any homeowners fees. The idea is to provide a long term solution by having an affordable and sustainable modification.
Since the federal mortgage loan modification program has standard guidelines for everyone, smart homeowners will take an hour or two to learn the basics of what it takes to qualify-you can increase your likelihood of approval by understanding what the bank is seeking to see from you, then fine tuning your application in order that it fits into the approval criteria.
Now that the us government has stepped in with billions in stimulus money, the banks are finally helping needy homeowners. Help is finally available-you simply need to learn how to get it.
You can get the help you have to apply and qualify for a federal loan modification by ordering and downloading the very best selling handbook for homeowners, The Complete Loan Customization Guide. This is a low cost, easy to read home edition loan mod kit that provides you with everything you need to prepare a professional and acceptable mortgage loan modification application. You are provided with all of the required forms and given detailed directions on how to accomplish them properly. The Complete Loan Modification Guide will take you step-by-step through calculating your debt ratio, completing the monetary statements, writing your hardship letter and then putting everything together to submit to your lender. Learn how you can apply and qualify for the Obama federal plan too. Get started today on the path in order to secure home ownership, order and download The Complete Mortgage loan modification Guide.