Tuesday, March 8, 2011

Obama Loan Modification Plan – Saves Your Home From Foreclosure!

“The Obama loan modification plan aims to help the struggling homeowners and make their monthly payments affordable. $75 billion has been funded for this plan, wherein the monthly mortgage payment of the homeowner is modified and thus they can save their home form foreclosure.”

Many households are hit by the current economic recession and thus many people have lost their jobs. There are few people who have got salary cut. President Obama has thus set up Obama’s loan modification plan to help the needy individuals. This plan aims to help nearly four million people and saves their home from being foreclosed. Usloanz also provide services for this plan and helps all those who are struggling with their mortgage payment.
The Obama’s making home affordable program is also called as “The Homeowner Affordability and Stability Plan” and $75 billion was funded for this plan, it has two parts.
In the first part, assistance is given to the homeowners who are unable to refinance because of the depreciation in their values of homes in the recent housing downfall. Here, the homeowners will keep his home even if its value has been depreciated below the mortgaged amount. Foreclosure is because the family is unable to afford the payments. To qualify for this plan the current mortgage loans should be more than 80% of the home market value.
In the second part, those homeowners are given help who are on the verge of foreclosure. Here the modification is done in the mortgage and thus the payments are made affordable. This implies lowering the interest rate and the monthly payments shouldn’t be more than 31% of the mortgagor’s income.
Those homeowners are taking advantage of the federal loan modification program and are current on their payments will get $1000 of incentive for five years.
There are few Obama loan modification requirement, they are given below
  • The property should be a single family residence home
  • The home should be the primary residence of the borrower
  • The current mortgage balance should not exceed $729,750.
  • The loan should not have been originated before 1/2/2009.
  • The borrower should be able to prove his financial hardship.
The Government loan modification program can save the homes of many people who were hit badly in recession. This will continue for few more years until the housing economy gets settled.

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