Obama Loan Modification - Top 10 Questions

What If I Am Already Facing Foreclosure?If you are already facing foreclosure your application will be reviewed by lenders or servicers who you will be borrowing off, these lenders (or servicers) will be looking over your application to see if you fit the approval requirements for the loan modification program.

1. What Type Of Person Qualifies For Obamas New Loan Modification Program?

To qualify for the program you must:

1. be within the current Fannie Mar loan limits
   
2. live in the home as your primary residence
   
3. have your current house payment more than 31% of your gross monthly income
   

2. How Much Will The Modification Cost Me?

The cost of using this program is absolutely free, however beware of companies who are charging large upfront fees to apply.

3. Is My Lender Required To Modify My Loan?

No. The loan modification is voluntary and the lenders (or servicers) are offered financial incentives.

4. What If I Have Already Applied For A Modification With My Bank?

If this is the situation you must ask your lender to consider you under the Homeowner Affordability and Stability Plan.

5. Do I have to be delinquent on my payments?

The answer is no. Being delinquent on your payments is not needed, however to qualify for obamas new loan modification program you must be able to show that you are going through or will be going through financial hardship. Writing a hardship letter that states why you are in this situation (loss of income, increase in expenditure...) is a good way to do this.

6. I Owe More Than My Home Is Worth, Do I Still Qualify?

There are certain requirements to get into the program and the principal balance is dependent on the lender.

7. How do I know if my current loan is under the Fannie Mae or Freddie Mac and is covered under this program?

Easy, all you have to do is call your lender (or servicer) and ask them.

8. What Am I Required To Bring In Order To Qualify?

You will need to bring with you:

• Paycheck Stubs
  
• Tax Returns
  
• Statements of expenditure and income
  
• And A Hardship Letter
  

9. How Do I Apply For A Modification Under Obamas New Loan Modification Program?

Obtain the loan modification forms and complete them, making sure you fill them in correctly with all your details verified. Then make sure you learn about the approval criteria so you know what is coming your way.

Help in the form of aggressive loan modifications and refinance programs are available to homeowners who know how to qualify for obamas new loan modification program. A loan modification proposal must be sent to your lender to prove you meet all needed criteria.