Who Can Apply For The Obama Loan Modification Plan?

By: Refinance Mortgage | Posted: 21st October 2010

What is needed to apply for the Obama's Federal HAMP loan modification and how to qualify for it? These two basic questions always revolve around the debtors mind. This program worth $74 billion is designed to help those homeowners who are under risk of foreclosure and those who are about to default. The goal of this plan is to provide borrower an affordable and sustainable monthly payment to help them to avoid foreclosure.

The HAMP loan modification has compulsories certain qualification guidelines for everyone this implies that if one can prove fit to qualify with those guidelines than they have a good chance of getting their loan modify. Below given are the guidelines for approval.

Who can apply?

• Loans which are originated before January 1, 2009
• Loan on the primary residence
• Loan amount which are less than $729,750 for a single unit building
• Those who can prove their financial hardships
• Those who have current payment more than or equal to 31% of the gross monthly income including the property taxes, principal, homeowners due, homeowners insurance etc.

How to apply for loan modification plan

• Call the lender and request them to be considered for the HAMP plan
• Complete an affidavit of hardship and write the hardship letter
• Prepare the financial statement detailing expenses and income.
• Give 2 months bank statement
• Give prove of income, stubs, tax returns, award letters, roommate income etc.

How to qualify for the loan modification programs?

• Decide the target payment using the program guidelines
• Calculate the debt ratio thus one can fit with the approval criteria and can meet the target payment on time.
• Amend the budget and financial statement to show the current disposable income with new target payment.
• Submit an accurate and complete package.

Obama HAMP plan is designed so that the borrowers can apply and qualify with the working details of their lenders. This program is free for borrowers and are designed thus the average homeowners can successfully modify their loan. Some basic guidelines have been designed so the average homeowner can modify their loan easily. One needs to just learn the basic guidelines and work on the financial statement, make necessary adjustments and contact the lender to initiate the approval plan. One can use the same formula which the bank uses to qualify their lenders and assure that the application is done in a correct manner. Just input the own individual income, expenses, debt ratio, target payment, new interest rate, disposable income etc and calculate the amount.

Get assistance to prepare the accurate and acceptable loan modification application and get approve easily by following their guidelines. Loan modification will help you to get instant results and will alter your financial conditions and will make your debt manageable. You just need to follow the basic guidelines for approval and get your loan modified. The monthly payments will become more manageable on modifying the loan and thus one can save their home from the risk of foreclosure.

Author Box:
Alicia Pinder is working as a counselor at a loan modification firm; he has helped hundreds of people to get their loan modified. He believes that services from Refinanceitt are excellent and their approval rate is more compared to other companies.
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Tags: good chance, basic questions, target, disposable income, affidavit, borrowers, debtors, financial statement, property taxes, financial hardships, single unit, homeowners insurance, loan modification, hardship letter, obama