On March 4, 2009 the $75 billion Homeowner Affordability and Stability Plan will be passed into law by President Barack Obama. The White House has just released who will qualify and how to go about receiving a Loan modification plan
through the new plan. This 4 step guide shows you what you need to do for your family to benefit! Step 1: Determine if you are Eligible for your share of the $75 billion Bailout? 1. Do you live in the home? 2. Is your current loan amount within the Fannie Mae conforming limits ($625,500 in high cost areas and for other areas it is $417,000). 3. Are your current house payments more than 31% of your gross income?(Loan modification kits can help with all financial calculation your lender may want to see). 4. Are you must be able to prove you have current income?. 5. Do you currently have a job?
If you answered yes to these five questions there is a good chance you will qualify for a loan modification under the terms in the Homeowner Affordability and Stability Plan. Step 2: Apply for a Loan Modification- You must act quickly; millions of American's will be trying to get a piece of the bailout! The sooner you act the better your chances are of receiving a loan modification. However, it is important to ensure that you have all your documentation in order so that when you do reach your lender they will be able to process your request quickly. So in step 2 first prepare all documentation required by your lender then contact them.
The Complete Loan Modification Kit has all document templates, forms and checklists your lender may request. With the Homeowner Affordability and Stability Plan if your loan qualifies there is a good chance that the lender will contact you. Be certain that the person claiming to be your lender truly is! But there is no guarantee your lender will contact you, therefore it is in your best interest to be proactive and contact them. INSIDER TIP #1 – It is important to understand that with Obama's Homeowner Affordability and Stability Plan lenders have a financial incentive, and they love money, to process as many loan modifications as possible.
Therefore it is essential that if you want your lender to consider your case a high priority for them, you need to make it easy for them to process your application fast. Nothing will get your case dropped to the bottom of the pile faster than taking up an hr of your lenders time with questions you can learn quickly online. The Complete Loan Modification Kit provides a clear overview of the loan modification process. INSIDER TIP #2 – One of the largest differences in the loan modification process that the Homeowner Affordability and Stability Plan will have is the fact that to receive a loan modification you do not need to be behind on your mortgage payment. Now if your ARM has been reset to a high rate and you answered yes to the questions in step 1 you can likely get your rate reduced to 4.5% fixed.
If a family has a setback, like unemployment, reduced household income or illness, will not be consider for this modification plan. For properties that have not equity, default and foreclosure may be impossible to avoid. Similarly, if the family has a big expense for a new roof or new plumbing, etc., it would not make sense to put more money into a home in which they have no equity. In those cases Obama's Loan Modification Plan will not be a solution for the homeowner. Fortunately, there are still ways you can stay in your property for a very long time, often more than two years, even if you were rejected into the Obama's Loan Modification Plan or if you think you will not qualify at this time because of the many requirements necessary to be considered for the program. Even if you lost your job, or have not income whatsoever, you still can stay in your home, but you need to know what to do and how to proceed in order to achieve this.
