Expert Foreclosure Help

With The Loan Modification Program Drafted By Obama – Who Will Be Left Holding The Bag?

With 12% or a staggering 5.4 million Americans behind on their mortgage payments today, who will actually benefit from Obama’s Loan Modification Program? The program is not designed for every person and a large group of American Homeowners who need desperate help are going to get the shaft. If they qualify, the Government Plan called The Affordability and Stability Plan will allocate $75 billion dollars to help borrowers stay in their homes. Here is some important information if you believe you are a qualified candidate and can benefit from this newly announced program.

The goal of this loan modification program is to help 7-9 million Americans stay in their homes. Although the banks are highly encouraged by the Government to participate in the loan modification plan, it is not compulsory. The program is voluntary and banks are under no obligation to help any homeowners and the final determination is up to the bank. If you plan to take advantage of this loan modification plan you are going to have to produce documentation to prove that you are eligible. Here are a few of the basic criteria to be used as a benchmark to see if an individual qualifies for the loan modification program:

1. You must live in the home as your primary residence.

2. Not available on second mortgages.

3. You must be able to prove your income.

4. Your must be able to prove you can make the new payment from the loan modification.

5. You do not have to be delinquent to apply for this loan modification program

If the borrower passes the 5 step test for eligibility they will need to gather paperwork and complete all the required forms. The borrower must be able to prove that they are facing financial hardship, provide an accurate financial statement to verify eligibility, and wait for possibly months to find out whether they have been accepted into Obama’s Loan Modification Program.

Most banks are participating in this program, but as mentioned earlier in this article they are participating in a voluntary basis, it is not compulsory. The Federal Government is offering banks who participate in this program financial incentive if they participate in this loan modification program. In addition, the Federal Government has outlined financial incentives to borrowers under this loan modification program and keep their payments current for a certain amount of time. If a homeowner has the income and can foresee no problems in making future payments this may be the ideal program for their situation.

Unfortunately, President Obama’s Loan Modification Program will not help all homeowners who are in desperate need. A large majority of homeowners from the States of California, Florida, Arizona, and Nevada will be ineligible for the loan modification program because their homes are worth significantly less than the outstanding mortgage.

Of the nearly 52 million U.S. homeowners with a mortgage, almost 14 million or nearly 27 percent, owe more on their mortgage than their house is now worth according to Moody’s Economy.com. Nearly half of all borrowers in Nevada were “under water” on their home loans as of December 2008, according to First American CoreLogic. These American Homeowners have virtually no chance to get any help through Obama’s loan modification plan.

Please do not give up all hope. During the boom years Mortgage Brokers, Lenders, and Banks committed blatant violations of Federal and State Statutes that were designed to protect American Consumers. There were serious violations that were committed and if you take action immediately you could potentially receive relief and not wait around to see if Obama’s loan modification plan will work or not. There is a way out of your situation, however it requires you to take immediate action. If you feel a loan modification is in your best interest we can assist you with that avenue and discuss other possible solutions to your problems, especially if you are a troubled homeowner in California, Florida, Arizona, and Nevada. We are here to guide you through the loan modification process and any other option you may wish to pursue.

For more information about loan modification and other available options please visit us at http://www.thedebthealer.com or call toll free (800) 931-7138.