With President Obama's Countrywide Loan Modification package, lenders are now accepting applications from eligible borrowers who are currently facing financial hardship. These lenders have been offered cash incentives under the plan in exchange of lowering the monthly obligations of qualified homeowners. The game plan is to reduce mortgage interest rate to as low as 2%, extend the life of the loan to as long as 40 years and to defer the principal. As a homeowner struggling to keep your mortgage payment current so as not to lose your home, you want to take advantage of the offer to find relief and peace of mind. But the question remains: How are you to get your share of this Countrywide Loan Modification under the new federal loan guidelines?
First, you will have to see to it that you are qualified. Listed below are the qualifications lenders will require if you file an application for loan modification:
� Your mortgage loan must have been initiated before January 1, 2009.
� Your current mortgage payment must not be less than 31% of your gross monthly income.
� Your mortgage balance must not be more than $729,750.00.
� You are not a delinquent borrower.
� You currently live in the home you own.
� If you are a borrower on high total debt, you must be willing to go through HUD-certified consumer debt counselling.
Next, you will have to prove you are indeed qualified for loan modification. This includes paperwork as you will have to gather sufficient documentation and completely fill out the mortgage modification application form to get it done. Documentation includes your proof of income (such as pay stubs or IRS tax form), a detailed statement of your expenses, bank statements. Also, don't forget to prepare a written hardship letter to convince the lender of your need for a mortgage loan modification.
To save your home,
click here to get the help you need to qualify for a
mortgage modification loan.
