Obama Plan

President Obama’s Affordability and Stability Plan will allocate $75 billion dollars to help borrowers stay in their homes - but it will not help everyone. Who will qualify for help? Which lenders are participating? Here is some helpful information if you are interested in applying for this loan modification plan.

The goal of the new loan modification plan is to help between 7 to 9 million borrowers stay in their homes. However, the program is voluntary for lenders and each lender will determine which borrowers will qualify. The Federal government will offer incentives to the lenders that participate, but final determination is up to each bank. Homeowners will be asked to gather certain required documents and complete loan modification forms that will be reviewed for eligibility.

Here are some general guidelines for basic eligibility for this program:

You must live in the home as your primary residence
Not available on second mortgages
You must be able to prove your income
Your current house payment must equal 31% or more of your gross monthly income
You do not have to be delinquent to apply for this loan modification program
How do you apply for the Affordability and Stability Plan to begin the loan modification approval process? Interested homeowners need to begin gathering the required paperwork and completing the required forms. Borrowers must be able to prove that they are facing financial hardship, detail their income and expenses clearly and provide all of the necessary paperwork to be considered as a candidate.

Which banks are participating in this loan modification program? The program is on a voluntary basis, however the Federal government is offering monetary incentives to lenders and servicers who participate, so most banks are projected to offer this plan to their borrowers who qualify.

Successful borrowers will also be given a financial incentive for keeping their new modified loan current. The incentive will grow for each month that the payments are made on time, with a possible $5000 bonus that will be applied directly to their mortgage balance at the end of 5 years. Now is the time for borrowers that are suffering financial difficulties to contact us. We can help you qualify for this loan modification program and submit your paperwork for approval. Help is now available. It is important for borrowers to contact our consultants that understand how to reduce your payments and help save your home.

Even if you are not qualified for the Affordability and Stability Plan there are certain bank programs that might be good alternatives.