The Obama Loan Modification Program Explained
The Obama Loan Modification program has been in effect for a number of years now. Billions of dollars were set aside to assist homeowners with mortgages they can no longer afford, and to stimulate the economy. But, millions of homeowners have yet to take advantage of this loan modification program.
What Is The Obama Loan Modification Program?
It was created in 2009 to help homeowners reduce their monthly mortgage payments and avoid foreclosure. The initial goal was to help 3 – 4 million homeowners with their mortgages. That is still the goal today.
If you are qualified, this program may help you to lower your mortgage principal, lower your monthly mortgage payments and lower your interest rate.
The biggest snag has been qualifying homeowners for loan modifications. In a recent speech President Obama announced he would work with various federal agencies to make the program easier for more homeowners to qualify. As it stands, the current qualifications required still apply. While many homeowners have been helped out by this program, there are millions more that still need help.
Should You Still Apply For The Obama Loan Modification?
If you are behind on your mortgage or soon will be, it may be an option you need to seriously think about. The fact that the government is trying desperately to literally give away billions of dollars makes applying that much more appealing to many homeowners.
If It’s Such A Great Program How Come So Many Homeowners Have Not Been Approved?
There are a few reasons why this may be the case.
- Many homeowners are still unaware that the option is even available. When someone is in financial crisis, the fear of losing their home they worked so hard to get in the first place is devastating. A person can get so depressed, they literally shut down and stop trying. It can take a lot out of a persons natural ability to fight.
- Others know about the program but assume because they’ve already missed several payments they won’t qualify. They are unaware that missed payments is not a deal breaker.
- Finally the most common reason so many homeowners who should have been approved but were not, were due to improper documentation from homeowners. And incorrect procedures from lenders.
The first two reasons we’ve mentioned can be easily rectified for the most part. The third issue requires a lot more
expertise in the area of loan modifications than the average homeowner has. The process itself is so overwhelming, it’s no wonder any one manages to qualify.
The right documentation which includes, pay stubs, expense reports, debt ratios, hardship letter, and many other required documents is crucial to the application process. In addition to the paperwork, many homeowners are unaware of the countless hours they will need to spend making follow up calls to their lender. Often times the lender may not even know that they’re missing something until too late in the process and then denies the loan modification.
This Is Why You May Need A Loan Modification Expert
You need to know ALL of the facts not just some of the facts. The fact is, banks are not playing fair. They are intentionally making the process more difficult. The average homeowner has no idea they are being given the run around until they get a phone call from their lender saying “You’ve been denied…thank you and have a nice day!” This has happened even after the homeowner has made payments during a trial period on time.
There have also been cases where banks have submitted loan modification documents incorrectly. Causing the homeowner to be denied. The Obama administration is aware of the problem and working toward a solution.
But even once that happens, hiring a loan modification company is still a better option. You may be saying to yourself, but that means I’ll have to spend more money.
That’s true. But the alternative is, you do it yourself and hope for the best. If you’re denied, the cost to you will be a lot more than the fee you will pay a loan modification service.
A loan modification service can help with the paperwork and do all the heavy lifting. The point is, you don’t have to lose your home. This program gives you a chance keep your home and continue to live the American dream. Now that may sound a little corny, but the facts are the facts. The final choice is up to you.
An Obama loan modification could help you to reduce your monthly mortgage payments, extend the term of your mortgage and or lower your interest payments. Speak with a professional loan modification expert, and get the process started. If you want to take on the process by yourself, you will find the steps you need to take HERE .Source: www.bestloanmodificationcompanyreviews.com