Are you stuck in paying your mortgage? Are you scared of losing your home due to unpaid mortgage loan? Good news. The government has come up with a federal program designed to help the homeowner stay in their home and also pay a small mortgage. This plan is under Obama loan modification plan. It is meant to help homeowners who are financially strapped.
Currently, there are over 4 million homeowners who are facing financial hardships. The Obama loan modification policy is a federally subsidized obama loan forgiveness program that awards borrowers, servicers and lenders monetary incentives on each mortgage.
The monetary incentive, however, must be modified under the standard guidelines. Lenders are therefore required by the treasury department to participate by signing formal agreements. The formal agreement ensures that the lender will adhere to the strict guidelines and method of home affordable modification.
Then comes the big question. How will you benefit from Obama loan modification plan? After passing the screening process, you are then entailed to have your mortgage modified. Your mortgage interest can be reduced as low as 2%. Your mortgage repayment period can be extended for 40years, and you can be forgiven for failing to pay your mortgage within a certain period.
The new goal of this obama loan forgiveness program is to modify the payments to equal 31% of the borrower’s gross monthly salary. The goal of the Obama loan modification plan is to give a sustainable and affordable payment plan and keep homeowners in their homes.
Not all homeowners qualify to get their loans modified. They must be able to meet the basic requirements. These basics requirement entails the homeowner living in the home as his primary residence. It also requires the homeowner to have applied for the loan as at January 1, 2009. The current payment should be equal to 31% of their gross wages. The loan should not be more than $729,750.
The Obama loan modification plan includes an application and a telephone interview. It is important first to read and understand the guidelines before contacting the lender. Secondly, prepare your paperwork carefully and correctly. Then submit the paperwork to the bank. To learn more about loan modification plan, you can visit https://en.wikipedia.org/wiki/Public_Service_Loan_Forgiveness_(PSLF).
The bank will then review the paperwork and then make a decision based on what they see and hear from you. Make sure your paperwork is filled with correct information. False information may lead to your loan being declined and rejected. Be confident and sure of yourself when contacting the lender. Finally, fine tune your application so as to meet the standard guidelines.