Obama Loan Modification Program Extremely Beneficial For Changing Your Lives
The Obama loan modification provides for plenty of advantages to distressed homeowners who are faced with financial hardships. But to avail these benefits, potential loan modification applicants are required to satisfy certain basic requirements as per FHA guidelines in order to qualify for a Federal government loan modification. Here is some information about the seven benefits provided by the FHA loan modification and the eligibility criteria for securing these.”
The Obama loan modification program is a federally subsidized plan which is supported by a $ 75 billion stimulus package. The main objective of the federal loan modification scheme is to help distraught homeowners to make home affordable and save their homes from a possible foreclosure. The plan, which is also known as the “Mortgage loan modification” or HAMP, allows distressed homeowners to modify their existing home mortgage loans by using standard terms developed by the Treasury Department. There are seven advantages offered by the federal loan modification plan which is governed by the FHA guidelines. But to avail these benefits one is required to qualify for the FHA home refinance process.
7 Benefits offered by the HAMP:
1. Once applicants are eligible, your mortgage lender would put on hold the process of foreclosure of your house.
2. An applicant could reduce his monthly mortgage payments to 31% of your gross monthly income.
3. Current penalties and late fees could be waived if you qualify for a loan modification.
4. There is a facility in the process of loan modification programs to roll past due payments into your modified loan.
5. An applicant could secure an interest rate as low as 2%.
6. The modified loan term could be extended up to 40 years.
7. The principal amount owed could be deferred or even forgiven.
The entitlement of these benefits is subject to an individual’s being eligible for a home mortgage refinance under the federal plan. If you are a struggling house maker and have defaulted on your current home mortgages, you must satisfy the following basic requirements. Only then you could be allowed to submit a loan modification FHA for approval.
Qualification criteria for a loan modification or Obama loan modification:
1. The home to be refinanced should be the applicant’s primary residence.
2. The value of your current home mortgages must not exceed $ 729,750 for a single unit.
3. An applicant’s existing monthly mortgage payment should be more than 31% of his gross monthly income.
4. Applicants are required to furnish a list of financial hardships faced by his family.
Thus, President Obama’s loan modification program or HAMP requires distressed homeowners to prepare a lot of documents in accordance with the rules and regulations outlined by the FHA. To get a quick approval for a loan modification, you need expert guidance to ensure that your paperwork is complete and efficient. An attorney assisted loan modification application is therefore very much desirable. There are plenty of professional services available online for this. However, it is recommended to use the expertise of reputed service providers like www.USloanz.com in order to get proper information and right kind of guidance required for an Mortgage loan modification program.
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