Baroda, Gujarat India (PressExposure) February 21, 2011 -- What is Obama's Loan Modification Program? Passed on the 4th of March, 2009 Obama's loan modification program was introduced to help billions of Americans re-construct their life by modifying terms and conditions of mortgage loan taken by them so that their financial situation gets stabilized and the Government gets a chance to stabilize the real estate market. This type of Federal loan modification program was especially introduced in the backdrop of the economic recession which had every household in its grip. Obama's Mortgage Modification Plan comes within the ambit of the more comprehensive Homeowner Affordability and Stability Plan also known as the Loan Modification Plan. The loan modification program aimed at people suffering from massive financial crisis leading to default in the payment of the mortgage loan amount and allowing them to retain their homes by assisting them with $75 billion dollars and also modifying mortgage loan structure.
Features of Bank of America Loan Modification Program?
There are several features of the Bank of America loan modification program which needs to be followed as this type of assistance is not meant for every individual applying for the program. Let's have a look at the features of the Federal loan modification program:
1. Lenders are coaxed into offering this type of program through the provision of incentives provided by the Government. Usually lenders receive around $1500 incentive for accepting the loan modification program and offering it to needy homeowners.
2. The loan modification program aims at reducing the borrower's expenses on the loan amount to 31% and thus the cost of the program is shared between the Government and the lending institutions.
3. This plan is a saving grace for all such individuals who want a modification in their loan type as it provides a $1000 incentive for repaying modified loan amount continuously for the next 5 years. The incentive is provided annually if the borrower pays back the loan on a timely basis.
4. The home owner will be obliged to submit every single detail about his income, expenses, mortgage loan structure, financial hardships because of which the client is unable to repay the loan amount.
See If You Qualify: http://www.obama-loanmodifications.com/loan-modification-application.php
What are the requirements to qualify for Federal loan modification program?
Modifying mortgage loan isn't that easy as you would like it to be. One needs to fulfill certain parameters to qualify for this type of program. Let's take a look at the Obama loan modification qualifications:
1. The mortgage must be the first mortgage and the residence should be the primary residence of the owner.
2. Modifying mortgage loans will also be possible for those with a second mortgage.
3. Proof of income and expenses, monthly mortgage payment which should be equal to 31% of the gross income and details regarding financial hardships such as change in circumstances or increase in monthly payments etc. should be accurate and justify the reason for applying for the Federal loan modification program.
4. The first loan should be dated before 1st January, 2009.
5. Everyone who meets the criteria irrespective of whether you have defaulted on your loan or not can apply.
6. The unpaid principal amount of the mortgage must be less than or not more than $ 729, 750.
7. Previous modification of mortgage loans cannot qualify for such loan modification programs again.
It is obvious that the Bank of America Loan Modification Program is undoubtedly in the favor of people who are facing financial crisis and are somehow struggling to retain their home. Amidst recession many home owners lost their home, to curb this situation and stabilize the real estate market, the Obama administration came up with this loan modification program that allowed modification of mortgage loans to loosen the reigns of debt and repayment.