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Credit Report & Credit Score; Credit Repair, Debt Management > Mortgage Refinance > Are You Qualified for Obama’s Loan Modification Programs?

Are You Qualified for Obama’s Loan Modification Programs?

By Ruth Racey
Published: Tuesday, November 17th, 2009

The money provided by the Government to help struggling homeowners require people within a specific criteria or class. If you are interested to apply for this loan modification program and help stabilize finances, here is additional information that may help you in the application process. 

The new loan modification plan created by President Barack Obama aims to help approximately 7-9 million people suffering financially in the USA. These people should be able to provide necessary and supplementary documents as well as papers to be reviewed and assessed by lenders (volunteers are given financial incentives to take part). Then, they will notify them of their findings and tell them of their chances whether they qualify with President Obama’s loan modification plan.

If you are considering preparing your papers and applying for the program, here are a few guidelines you should know to get a shot in Obama’s loan modification plan:

  1. Your current home should be your primary residence.
  2. You will not be able to qualify if you are already on your second mortgages.
  3. Prepare papers that will prove your income (should be produced in document form).
  4. Your current monthly mortgage in your house is equal or more than 31% of your total monthly income.
  5. You do not need to be delinquent to apply for this loan modification plan, but you must attest the fact that you are or will be facing financial difficulties without it.
  6. There are no charges or fee when you apply for the program.

In order to apply for an Affordability and Stability Plan, start early in gathering all documents and paperwork that you may need. Your compilation of documents might include proofs of your income, financial hardship or debts, and expenses. All these documents and forms will be carefully evaluated and verified to see that all entries are correct and accurate.

The next question now is in which banks you would be able to apply for Obama’s loan modification program.  Majority of the banks are included in this program because of the incentives and privileges the Government is offering to the servicers and lenders of this program, though joining it is voluntary. By taking care of your modified loan, you are consistently given incentives each moment you pay monthly dues on time. These financial privileges can add up to $5000 after a 5 year term. This may be your ultimate chance of getting back on your feet, so start learning now on how you will qualify for this plan.

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