What does a homeowner need to do to take advantage of President Obama’s “Making Home Affordable” plan? How can I use this plan to get a more affordable mortgage through refinancing or home loan modification? Here are your answers:
Familiarize yourself with the eligibility requirements before you fill out your loan modification application. It is difficult to qualify for something when you are not aware of qualifications criteria. Get a grasp of the basics and formulate your application so that you fit those guidelines. Have all your documentation together at your disposal as you fill out the application. You will feel more confident when you contact your lender to request assistance. It will also help you avoid making a costly mistake.
The stimulus money given to the lenders will help them lower any risks they are taking on by approving at risk homeowners, making it easier than ever to actually get an approval. Homeowners who have bad credit, a bad ltv (loan to value) ratio, or have been denied on their refinancing or modification in the past, now stand a much better chance of getting approved.
Homeowners who happen to be facing a “financial hardship” can also use this plan to their advantage and get a home loan modification. Financial hardships are considered anything which is out of your control. These things include, among others, loss of job, hospital bills, reduced wages, increased mortgage payments, and a whole list of other things. Homeowners who are facing these problems should write them down, along with their plan to get their finances back on track, and include this letter in their application. Also, include any related documents and bills relating to these financial hardships such as bank statements, tax returns, or layoff notices.
Re-default and Cure Rate On The Obama Loan: The Re-default and cure Rates will be determined by using an equation based upon GSE analytics and data from the Plan portfolio (below). The Treasury will update these tables regularly from incoming data, receiving help from a group of government officials from other agencies.
Learn more about Obama Mortgage Relief Plan Qualifications.