It’s not easy when you are facing trouble making mortgage payments and when there is a possibility you might lose your home to foreclosure. But don't you worry; you may be eligible for a quick mortgage loan modification using Obama's Stimulus Plan. The Treasury Department has put into operation a loan workout program intended to help millions of homeowners avoid foreclosure with a low, affordable loan payment.

President Obama's mortgage loan modification plan offers homeowners with manageable payment terms so they can stay in their homes. Under this program, you can modify mortgage fast and avoid foreclosure applying and meeting certain approval guidelines, which are:

  • The house must be your primary residence
  • The Loan should have been taken out January 1, 2009 or before
  • Current loan balance is $729,750 or less
  • Mortgage payment should equal or be more than 31% of your gross monthly income-including taxes, insurance and homeowners dues
  • You must be facing a financial adversity
  • Applies to both first and second loans
  • In order to qualify, you do not have to be delinquent, but must prove imminent risk of default

    If you meet the above criteria, then you can go ahead with the application procedure with your lender. Here are some tips that can help you get a fast mortgage loan modification.

  • Get in touch with your bank and ask to be considered for Obama's mortgage loan modification plan
  • Only give your bank your financial information when you’ve completely understood the guidelines for approval
  • Make sure your financial statement and other application forms are correct so that you prove that you meet the guidelines
  • Make sure you have all the required documents in order
  • After all of the above, you are now ready to submit your mortgage loan modification application and have the best chance of approval
A mortgage loan modification could be the perfect solution to your need to change mortgage loan terms, modify your mortgage fast and avoid foreclosure. So make sure you take the correct steps and you will be on your way out of all financial troubles soon.
 
 


In the recent times, loan modification has attracted a lot of attention, and many individuals, especially the debtors. Loan modification is the process in which the creditors agree to a new set of terms and conditions, and agree for a fee waiver, by decreasing the net payable interest amount. This however depends upon the negotiation process initiated by the debtor, or a representative from any one of the loan modification companies, who represents the debtor.

The borrower can benefit by:

  • Paying reduced or decreased monthly repayments
  • Decrease the net payable interest amount
  • Fix your repayment schedule, as per your cash inflow
  • Increase, or extend the loan tenure, so you get more time to redeem
  • Avoid foreclosure issues
  • Improved credit ratings through timely payments
The creditor can avail benefits like:

  • Respond to a working or performing loan, instead of ending up with bankruptcy situation
  • Recover interest as well as profit on a regular basis
  • Avoid litigation fees and legal procedures
How long does it take to successfully "complete" the loan modification process?

A loan modification program, as offered by a typical loan modification company, generally gets "over" within 30 to 90 working days, depending upon the company or the lender, and if you are able to properly coordinate with the attorney, or the loan modification representative. However, it should be noted that the process is not "set", i.e. there are no "legal" guidelines regarding the duration involved with loan modification application. Guidelines are usually followed, but there's no legal compulsion to stick to it.

A professional or a trained representative from a mortgage loan modification company can help to reduce the total time required to process the paperwork efficiently, and present your application in the precise way your lender desires. However, each lender's situation is unique, and the lender takes his or her own "sweet" time before consenting to the facility. Checking the past history of the lender i.e. how many applicants have been provided the facility, and how long they have waited can give an indication about how long it's going to take. There are no set rules.

It's recommended if you prefer to deal directly with your creditor, or through a loan modification specialist, you need to ask several questions up front before committing yourself:

  • How much times will it take for the process to "get over" - Find out the "quickest" and the "most delayed" scenarios, and then calculate the total number of days, it's likely to take. Mark out our calendar accordingly.
  • When can I expect some feedback about my case – Indicate or enhance the expected date in your calendar.
  • The particular person to contact in case I don't hear anything by the "designated" – Obtain all relevant details regarding the person's name, address, contact numbers and any alternative address if available

 
 


You can avoid foreclosure

Don't just sit back and let the foreclosure process run its course. You can avoid foreclosure by getting foreclosure assistance from a mortgage loan modification attorney. Saving your home from foreclosure should be your top priority.

Avoid bankruptcy

Though bankruptcy may have been a very popular option in the past, in recent times, with many new bankruptcy laws and restrictions, it has become a tedious and difficult process to undergo. Filing for bankruptcy may not relieve you of your obligation to repay your mortgage, and foreclosures may still go though. It may damage your credit for a long time. Avoid bankruptcy at all costs, and consult a loan modification attorney before filing for bankruptcy.

Loan modification

Arguably, it is the best option for someone facing foreclosure issues. Loan modification is a permanent change in one or more terms of a mortgagor's loan, which allows the payments to become more affordable and making it easier for the mortgagor to redeem in already difficult times. Usually the changes involved in a loan modification program are:

  • Reduction in the rate of interest
  • Increase in the length of the term of loan
  • A different type of loan
  • Or any combination of the above three
A loan modification program under the guidance of a loan modification attorney may offer more favorable loan modification benefits than your mortgage lender is likely to offer you. A loan modification attorney can modify your mortgage loan terms in an effective manner. If you are behind in your mortgage payments, this may help you avoid foreclosure.