President Barack Obama announced $75 billion Plan  popularly known as Obama’s Home Loan Modification with an aim to bring the American economy back on to the road by making loan modification affordable. Financial hurricane created by economic recession victimized many businessmen, and homeowners. Dwindling of earnings made the monthly payment, which was earlier like a child’s play, as if an un-scalable mountain. In such circumstances, Obama’s Loan Modification Program came as the god sent savior for millions of financially crunched people because according to this program, monthly payment cannot exceed 31% of the total monthly income.

Obama’s Loan Modification Plan comprises two categories:

•    One category has been delineated for the home-owners whose value of houses has depreciated, meaning loan value has exceeded real value of homes, making it impossible for them to avail the refinance. This plan particularly pertains to those people who have taken their previous loan from Fannie Mae or Freddie Mac.
•    Second category  is customized to reduce the monthly payments for those people who are on the verge of foreclosure. Under this, the mortgage gets modified resulting in lowering the monthly payments. Unlike first category, debtors need not to have availed their previous loans from Freddie Mac or Fannie Mae.

Obama’s loan modification plan is beneficial for the loan modification services and mortgage lenders also as for each qualifying modification case, they receive $1000 plus cash incentives for 3 years from the government.

If you are also looking for it, you need to hurry as one can avail modification of loan under this plan between March 4, 2009 and December 31, 2012 only.

A quick wrap up of its features:

•    The loan should have originated before January 1, 2009.
•    The home in question has to be a single unit (family) residence.
•    The loan should not exceed $729,750.
•    The home in question need not be condemned or vacant.
•    The purpose of the house should not be investment.
•    The interest rate can go as low as 2% under this program and the loan duration can be extended to maximum 40 years.
•    The documents need to be supplied by the borrowers:
1.    Proof of financial hardship-a crucial document to convince your inability to pay the monthly payments.
2.    Copy of latest tax return.
3.    Two recent salary documents or pay stubs.
•    The second mortgage has to be customized by service providers in such a way that monthly payment should not be more than 31% of total monthly income.
•    Another $1000 reduction in the principal amount can be availed by those homeowners who have been regular in paying their monthly installments.

Thanks for visiting our blog. If you want any information to see if you qualify for any of loan modification programs, please visit: Mortgage Modification.

Just wanted to update homeowners out there who are looking for information on the Obama mortgage plan.  In our previous posts, we talked about what the Obama mortgage plan can get you (lower interest rate down to 2%, extended terms and balance reductions).  We forgot to mention one crucial thing to many homeowners facing foreclosure…

Once we start the Obama mortgage plan with your lender, you mortgage is frozen for 90 days.  This means your lender cannot sell your home or evict for atleast 90 days, or until we come to a resolution (your modification is approved).

This will ease the stress of many homeowners who are facing foreclosure and allow them to by some more time to work out a solution.

If you want to speak to us about the Obama mortgage plan, feel free to give us a call or fill out our quick and easy contact form.  We are experts at getting homeowners qualified for this plan and we also have other exciting plans with many different lenders. 

Visit our homepage for more information —>Obama mortgage information home.

We can help homeowners to get a loan modification in many ways, one of which is the Obama Mortgage Plan to provide for affordable home loan modifications.  You need to fit certain requirements to be eligible for this plan, please call or fill out our easy form so we can asses your situation and help you get approved!

Obama Mortgage Plan
Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.

Home Affordable Modifications