Want to learn more about the Barack Obama Home Mortgage Plan 2009, otherwise known as the Obama Loan Modification Plan? Here is some information that explains 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…
I think sometimes, people want to keep their homes so bad that they think they have to lie on their lenders application. They either put their income too low (most common) or too high and end up getting denied. The place you want to be is generally a couple hundred dollars in positive cash flow each month on your income and expense sheet. But, there are many tricks to figuring this out the right way. It involves taking your current payment, doing some quick math and figuring out where your lender wants to see your income. If you put your income too low on the forms, your lender will assume that you are headed straight for a foreclosure because you won’t be able to make your mortgage payments even if they are lowered.
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% threshold 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 does’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.