Home Contact Us

Need Help Fast?
866-477-7050

Business Opportunities

Earn a Six Figure Income While Helping Clients

Careers

Join Our Team- Learn How To Now!

Loss Mitigation Branching

Learn How to Add Revenue Streams

Client Spotlight

View More Testimonials

Questions?

Get Home Values

Free Comprehensive Home Sale Trends In Your Neighborhood

Home / Assistance is Available

Assistance is Available for Loan Help Under President Obama's Loan Modification Plan

In order to get assistance with your home loan and prevent foreclosure, you first need to find out if you are eligible for the loan modification plan.
The following information should help you determine if you are qualified:
The plan, known as Making Home Affordable, was created by the Obama Administration in an attempt to prevent foreclosures predicted for millions of American homeowners.
The program utilizes loan modification procedures which can lower monthly payments to them more affordable. However, the application process has proved to be a bit difficult, so knowing a few things to get you started will help, and move the approval process along faster.
  1. Your home loan must have originated, that is, have been created before January 1, 2009.
  2. The loan must have a balance less than $729,750 for a single-family home. (Multi-family properties are subject to different rules.)
  3. The loan must be for a home that is your primary residence. Investment properties, vacation properties, or second homes are not eligible.
If you believe these items describe your situation, you may be a candidate for the loan modification process. There are some other things to keep in mind. The new payment amount you will be responsible will be no more than 31% of your gross monthly income (that means before taxes are taken out) of the entire household. The 31% also includes taxes, insurance and miscellaneous homeownership fees, such as association fees. If you currently pay more than 31%, you may qualify for a reduction.
The lowered monthly payment is calculated as follows:
  1. Reducing you loan interest rate to as low at 2%.
  2. Lengthening the loan repayment period up to as much as 40 years.
  3. The ability to defer interest payments and principal forbearance until the home can be sold or refinanced.
Many people have been able to keep up with their payments despite financial hardship, and they will not be excluded from participation in the program, as long as they meet the above requirements.
The government has created added incentives to apply for this plan, namely, there are no fees to do so and those seeking loan modification should be wary of any mortgage banker or lender who tries to charge them for this service.
Knowing a few basic facts about this process should help you considerably. Even if you have been turned away by a lender, it is worth it to try another service provider if it means saving your home from foreclosure.