Qualify for Mortgage Modification
Do you know if you are eligible for some of the billions of dollars in assistance available from President Obama’s home loan modification program? In order to know whether you qualify, you will need to look at your finances the same way the bank will when they are considering whether or not to modify your loan.
The Obama home modification loan program is intended to help homeowners who have suffered a hardship and are now facing possible foreclosure as a result. It offers incentives to banks to restructure the loan and let the borrower stay in the home. As you might expect, there are criteria that you must meet in order to be eligible for the program. The program is meant for families dealing with things like job layoffs or other special circumstances.
If you arrive at the bank with all your documents ready and your mind prepared for the standard questions you are likely to be asked, you will be ahead of the game compared to others seeking relief under the Obama home modification loan program. The bank will be comparing your situation to the standards outlined in the federal plan. They want to determine that the modified payment is affordable for you.
The main number to think about first is the family’s gross monthly income. The guideline is that housing cost should be 31 percent of that. The home must be your primary residence. The loan balance has to be under $729,750 and must it must have been obtained before January 1, 2009. You will also need to present proof of your expenses on a monthly basis.
The bank will try to get a complete picture of your financial situation, so it is to your advantage to show up prepared with W-2s, bank statements, and other paperwork that will demonstrate that you are eligible for the Obama home modification loan program.
If you feel you need additional help with the project, there are various sources you can go to, but however you choose to do it, you should make sure that you understand the process completely before going in.