Mortgage Modification Program: Where do you start?

So, you have heard about the Mortgage Modification Program. You are wondering if you could possibly qualify for assistance. You are worried that very soon you will lose your home to foreclosure. You have had no success in trying to find a solution. If you had the money needed to pay back payments and late fees, you would have made your payments!

This program may just be the answer to your dilemma, but you don’t really know where to begin to find out about the process. This program works through your original lender on the loan, but that is not necessarily the best place to start. You should not call your lender to request a mortgage modification until you have done all of your homework.

You should find out everything you can about the modification requirements and guidelines. If you think that you might qualify, you should gather all of your paperwork and begin to fill out the application package according to the guidelines of the program. After you have everything figured out and filled in, you then will contact your lender, and not before.

Your lender must be on the approved lender list, and your loan must be government sponsored through Fannie Mae or Freddie Mac. The date on the loan must be on or before January 1, 2009, and the amount of the loan must be $729,750 or less.

Lenders receive $1000 for each homeowner for whom they rework a mortgage. This helps them want to be of assistance. If you qualify, they can lower your interest rate, lengthen your term or reduce the principal. This is to get the house payment to a level that is 31% or less of the gross monthly income.

You should be very careful to get all of the details done correctly when you apply. You are only allowed to apply for this program one time, and it needs to be done right! You should present the reasons why you ended up in trouble with your mortgage. This is important for them to document that it wasn’ t your fault.

The Mortgage Modification Plan is President Obama’s way of trying to help homeowners and the economy at the same time, Don’t allow the program to expire before you take advantage of it. It ends on January 1, 2009, but if you are in default, you don’t have that long.