The New Mortgage Loan Modification Programs were introduced by the Obama administration in March 2009. For those of you struggling to meet your monthly repayments and with the threat of possible foreclosure hanging over you, this could be just the thing you are looking for.
With the agonizing recent recession and slump in housing prices, this has had a huge effect on millions of Americans. The Obama Loan Modification process has been introduced to help you through these hard times.
So what help is the government offering exactly?
Should you own and live in your mortgaged property and have a loan balance of below $729,750 you may be eligible. The government are looking to streamline your payments for up to five years. This may involve lowering the interest rate or extending the term of your mortgage.
For those of you suffering financial hardship and wishing to participate in this plan, you will be required to write and sign a letter stating such and if your overall debts are above 55% of your income, you will have to agree to take part in credit counseling. The final criteria to be eligible is that you must haven taken your loan out prior to January 1st 2009.
The process is a very rigorous form of verification, involving proof of ownership, proof of income and expenditure, through supplying relevant documents. Many industry experts believe that if these plans had been brought in a few years ago, then perhaps the current housing crisis could have been avoided altogether.
There are many companies who can help you through the legal and financial aspects for the Modification of your mortgage.
However, some Loan Modification Companies have been reported to charge anywhere between $1500 - $5000 to perform this service. So this, of course, has led the way for certain individuals to fight back and complete the procedures on their own. To learn how you can complete this process yourself Click Here.