If you are facing foreclosure is it worth the effort to put some papers together and send them over to your lender for review and hope everything just works out? Loan Modification Criteria is available for Obama’s Home Affordable Plan. By throwing these papers together without properly preparing your application according to the criteria is taking a big chance on your families financial future.
Because the Treasury Department has mandated the approval guidelines and loan modification criteria it makes sense to take the time and prepare a proper package before applying for an Obama Home Affordable Modification.
If you feel you do not have the skills required to prepare a modification application correctly, do not worry. The truth is that simple step by step instructions can be found in loan modification kits. In fact, these kits make it so easy that they do the simple math for you.
The most important part of the modification application is the hardship letter but if you know what the criteria for the Home Affordable Modification Plan is and you are using a modification hardship letter template than it can be very easy. Obama’s loan modification criteria is standard for everyone and it literally pays for you to know what is required.
The cornerstone of the Home Affordable Modification Plan is a term “target payment”. The target payment is an affordable payment that equals 31% of the household gross income. Your lender can use various standard methods to help you reach your target payment and if your target payment can be reached using standard methods than your chances of success are good.
Obama’s Standard Methods to Reach Your Target Payment of 31%
• Reduce Interest Rate – can go as low as 2% if required
• Longer Amortization Period – 40 years if required
• Principle Forgiveness – Possibly forgive some of the principal
If using the three standardized methods above your loan can reach the 31% hurdle than you are on your way to getting approved. There are other criteria that the bank considers including your recent financial hardship, which is included in the hardship letter, and you must be able to meet the debt ratio. If these calculations sound intimidating do not worry spreadsheets in loan modification kits are available to help.
There is a formula the federal program utilizes for modifications. Imagine if you could use the exact same process to prepare your application and increase your chances of getting your house firmly under your financial control?
Using this process to prepare your documents is your advantage to be had over all other homeowners looking for a loan modification but don’t know the criteria for Obama’s Home Affordable Plan.
Take Action Now – Start A Loan Modification Application Today
To prepare these critical documents you can use the Loan Modification Kit which provides you with all the forms, document templates and an extensive how-to guide.
To access a FREE Financial Hardship Letter Sample visit: CLICK HERE
