If you are searching the internet looking for more information on the Barack Obama Home Mortgage Plan or the Obama Loan Modification Plan, this article should help you understand how it works.
Many Americans are struggling to pay their mortgages and foreclosure rates are extremely high. To combat this problem, Obama unveiled his mortgage relief plan. This was supposed to help thousands of families lower their mortgage payments and keep their homes, but is it? Well, yes, if you know how to get qualified. The paperwork is kind of confusing for the average person and even if you understand all the questions properly, you might not fill it out right.
People tend to lie. Simple as that. They think they need to "fudge" their applications and make themselves look dirt poor. Nothing will get you denied faster than that! The bank wants to see that you are still making money, but have suffered a financial hardship - not a financial disaster. You have to be able to show that you could afford your lowered payments - even with the Obama plan. It is still the banks discretion on who they choose to accept.
You might want to consider hiring a professional on this one. If you do get approved for the Obama mortgage plan, your payments will be drastically lowered!
How low? Not greater than 31% of your total monthly pre tax income. That is a huge monthly savings for most people, especially if they are in a high interest rate loan, which is who this plan was made for. There are a few different ways that
your lender will get your payments this low and it always starts in the following order.
The first way your lender will try to get your payments within the 31% threshhold is by lowering your interest rate. This will go down all the way to 2% if necessary. If this doesn't get your payment low enough, they will move on to the next step.
The second step is to extend your terms. This lowers your payment even more. If you currently have a 30 year loan and extend that into a 40 year loan, you are spreading out your payments over 10 more years. If this doens't work, they will try step 3.
The third step is a principal reduction. This is very hard to get, but it does happen. Usually, lowering your interest rate and extending your terms is going to get the job done. Don't get mad if you don't get money knocked off of your balance. You'll have a lower interest rate than most everyone and a payment that is much lower, which is what you need to stay in your home.
If you would like professional assistance with the Obama mortgage plan or Obama loan modification plan, just visit the links below. They have helped many people get qualified for this program and can tell you exactly what you need to do.
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For assistance getting qualified for the Obama Mortgage plan, just visit the following sites. You must have your paperwork filled out exactly right to qualify for this plan! Visit obama mortgage plan or obama loan modification