President Obama's Affordability and Stability Plan - Top 10 Questions on Loan Modification Program
By Susan V. Gregory

President Barack Obama's loan modification program, the Homeowner Affordability and Stability Plan is aimed at offering help to over 7 million homeowners facing foreclosure. The $75 billion dollar plan features several options for borrowers who qualify to lower their monthly mortgage payments so they can stay in their homes. Here are the Top 10 Questions about the loan modification program to help you understand who will qualify:

1. Do I have to be delinquent on my payments? You do not have to be late on your payments to qualify for this loan modification program, however you must be able to demonstrate a current or projected financial hardship. This can be due to loss if income, interest rate reset, or increase in expenses.

2. What if I am already facing foreclosure: The loan modification program offers help in the form of lower monthly payments and encourages lenders and servicers to participate with monetary incentives. Each application will be reviewed on a case by case basis however, and the borrower must be able to meet certain approval requirements.

3. Who qualifies for The Homeowner Affordability and Stability Plan loan modification? Generally, your current house payment must equal more than 31% of your gross monthly income and your loan must be within the current Fannie Mae loan limits and you must live in the home as your primary residence.

4. How much will the loan modification cost me? There is no charge for this program, and the Federal government is cautioning homeowners against paying any company a large upfront fee to apply.

5. Is my lender required to modify my loan? No, this is a voluntary loan modification program and each application is reviewed on a case by case basis. The government is offering financial incentives to encourage banks to participate and most lenders are expected to comply.

6. What if I have already applied for a loan modification with my bank? If you are already in the process of working with your lender, ask them to be considered under the Homeowner Affordability and Stability Plan.

7. I owe more than my home is worth, do I qualify for help? There are provisions for the reduction of principal balance under the loan modification program, at the descretion of each lender.

8. How do I know if my current loan is owned or serviced by Fannie Mae or Freddie Mac and is covered under this loan modification program? You can call your lender or servicer after March 4, 2009 to ask them.

9. What do I have to provide in order to determine if I qualify for help? You will need to gather your paycheck stubs, tax returns, complete income and expense statements and provide evidence of a financial hardship with an explanation letter.

10. How do I apply for a loan modification under the Homeowner Affordability and Stability Plan? You can can begin to learn more about the approval criteria, obtain the loan modification forms and begin completing them properly, gather your other required documents so that you have prepared a complete and accurate loan modification application for your lenders review after March 4, 2009.

Help will be available for homeowners who understand how to qualify for the Homeowner Affordability and Stability Plan in the form of aggressive loan modifications and refinance programs. Successful candidates will be able to prove that they meet the approval guidelines by submitting an acceptable loan modification proposal to their lender.

You can get the help you need to understand and successfully apply for a loan modification by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at:
http://www.myloanmodificationcenter.com

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