The possibility of losing a home today due to foreclosure is probably greater than any time since the depression. The Obama Loan Modification Plan was created to lessen this possibility but for it to be of help to you, you have to make it work. This means you have to get yourself qualified into the government loan modification program one of the loan modifications made to your specific mortgage.
Many of the qualifications for the Obama Loan Modification Plan aren’t rocket science. The program looks for people who are experiencing recent financial hardship that makes paying on a current amount impossible. Being in foreclosure already can actually help someone qualify, as well as having missed payments on a mortgage. A loan needs to be worth more than 31% of what a family makes, and recent financial trouble like a lost job or unexpected ongoing expense is a plus. The federal loan modification program is designed specifically to help families keep homes that banks are trying to take.
When one of the loan modification programs actually modifies a mortgage, any missed payments that exist will be rolled back into the balance of the loan. The government will make sure that a family's monthly payments do not exceed 38% of their gross income, and subsidies will bring that amount down to the 31% goal of the federal program. This means that a family that was facing foreclosure that gets a modified payment structure will have a clean mortgage payment slate, paying 31% of what they are currently making every month to stay in their home and get it paid off.
Getting into the Obama loan modification plan will stop a bank from foreclosing on a home, even if the process has already started. This program is designed with the specific purpose of making good on mortgage payments. This is something that banks want just as much. Any missed payments will be rolled right back into the balance of the loan, providing a fresh start and a payment that can be met within existing finances.
The government loan modification plan is the best way to take advantage of the Obama loan modification plan and get the help one needs to fight the foreclosure proceedings on their home. It’s now proven that loan modification programs are the most effective way to help families stay in their homes.
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