Do you understand what it takes to qualify for you to receive a lower monthly mortgage payment? Are you aware of the criteria needed for being approved for loan modification? If you have been wondering if you qualify for President Obama's Federal plan, make sure you are aware of what the bank's guidelines are in order to be approved, before you apply. According to the plan, $75 billion has been set aside to assist eligible homeowners. Unfortunately, not everyone will qualify.
Homeowners must meet all guidelines and criteria in order to qualify for being approved for a loan modification. Knowing ahead of time how to fill out the applications and what to say during your telephone interview will improve your chances of receiving the government help you need. The key is to be as prepared as you can, so that you can save time and know exactly what options are possible for you.
It is crucial that your financial statement presented to your bank reflects your ability to afford the reduced mortgage payments. Alter your budget ahead of time, cutting any unnecessary expenses. The bank will want to see that you are making an effort to improve your situation the best you can, with the funds needed available to maintain your payments. Under the Federal plan, your payment will be no between 31-38% of your gross monthly income, factoring in your property taxes, homeowner's insurance, and HOA dues. Whatever that figure is, set your expenses and adjust your budget around it.
Your home must be your primary residence, with your original loan date prior to January 1, 2009. Your conforming loan limit is $625,500 (previously $729,750 in 2008). You must also be in a hardship situation for your finances, medical or credit debt, job loss, or adjustable interest rate increases.
Ensure you have all the mandatory paperwork ahead of time, including your financial statement, bank statements, and proof of income, before you contact your bank to start the application process. And since you have taken the time to keep accurate information, you will be more likely to have approval for a loan modification. However, you can only apply once, so take heed. Proper planning is vital to being able to receive the help you need to afford foreclosure on your home.
Homeowners must meet all guidelines and criteria in order to qualify for being approved for a loan modification. Knowing ahead of time how to fill out the applications and what to say during your telephone interview will improve your chances of receiving the government help you need. The key is to be as prepared as you can, so that you can save time and know exactly what options are possible for you.
It is crucial that your financial statement presented to your bank reflects your ability to afford the reduced mortgage payments. Alter your budget ahead of time, cutting any unnecessary expenses. The bank will want to see that you are making an effort to improve your situation the best you can, with the funds needed available to maintain your payments. Under the Federal plan, your payment will be no between 31-38% of your gross monthly income, factoring in your property taxes, homeowner's insurance, and HOA dues. Whatever that figure is, set your expenses and adjust your budget around it.
Your home must be your primary residence, with your original loan date prior to January 1, 2009. Your conforming loan limit is $625,500 (previously $729,750 in 2008). You must also be in a hardship situation for your finances, medical or credit debt, job loss, or adjustable interest rate increases.
Ensure you have all the mandatory paperwork ahead of time, including your financial statement, bank statements, and proof of income, before you contact your bank to start the application process. And since you have taken the time to keep accurate information, you will be more likely to have approval for a loan modification. However, you can only apply once, so take heed. Proper planning is vital to being able to receive the help you need to afford foreclosure on your home.
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