Get the obamas new loan modification plan for struggling homeowners President Barack Obama of believes loan modification is the answer to keeping distressed borrowers in their homes and want to home the stop plummeting values. The $75 billion homeowner affordability and stability is dedicated to reworking troubled loans, the loan modification plan is a big bet but will work with the proper financial incentives experts believe it. Mortgages bad Obama’s loan modification plan calls for restructuring of 4 million. Here are some important tips on how you can qualify. 1st Loan modification plan focuses on payments Obama’s plan recode lies on the would was that people prefer to stay in their home even as the house value declines if they could afford their monthly payments. 2. 31% debt income ratio the loan modification plan Obama has introduced requires lenders to decrease the borrowers payment to 38% of their great monthly income. The government will provide assistance to decrease it further to 31%.

If Lowe ring the interest rate to 2% still does not result in payments be extended up to a maximum of 40 will being less than 31% than the terms of the loan years. 3. $5000 financial Incentive for You lenders are now provided with a $1000 financial incentive to perform a loan modification and the borrower makes payments to the lender is eligible for another $1000 for each year, up to 3 years. Similarly the borrower can receive $1000 up to 5 years for every year they stay current with their modified mortgage payments you. Obama’s plan stipulates that neither lender nor borrower can receive the additional $1000 until the payments have been made for three months. 4. Owner occupied only Obama’s loan modification plan is aimed at the average American and not rich homeowners or investors. Because of this to qualify for a portion of the bailout the mortgage in question must be the primary residence and emergency have outstanding balance of over $730,000.

5 How to apply with 4 million Americans potentially receiving a loan modification the most important aspect of receiving a loan modification is to start immediately. The sooner you can complete a loan modification package and contact your lender the better are you changes. Similarly, with so many Americans wanting to take advantage of Obama’s loan modification plan lenders will not have time for partially completed applications. Therefore, it is critical that when you submit your application to your lender you must be missing any documents since it could delay your modification for weeks and ultimately jeopardize you keeping your home emergency. The easiest and fastest way to learn about the loan modification process is a complete loan modification Kit which will provide you with all the documents you need, including hardship letter templates, extensive step by step how to guide, document checklists and financial statement templates.