Obama's Stimulus Package to Refinance Bank of America Bank Loans - Mortgage Modification Tips

When you think of well-known banks in the US, Bank of America remains one of the largest institutions, dealing with such a wide-base of customers across the country. They have so much at stake with the difficult economy, so they are eager to help homeowners with solutions to keeping their existing mortgages before they foreclose or result in bankruptcy. President Obama has put forth a Plan for banks to have a way to assist homeowners, while in turn earning incentives from the government for their participation. Bank of America is one of the participating lenders for the 2009 Stimulus Plan.

If you currently have a Bank of America owned loan for your mortgage, here are some tips on approaching them to obtain a loan modification:

- It is very important to continue to make your monthly payments on time, without letting your loan default. If despite your efforts, you get behind, immediately draft a hardship letter to explain your situation. The bank will need it to determine whether or not you are considered a prime candidate for receiving assistance through the programs available. But your letter must include the reason why you were behind, your financial situation, and steps you have and will take to ensure that with a modified loan you will continue to stay current on your mortgage.

- If you are looking to refinance your home, the amount you owe must be 105% more than the market price of the property to be considered.

- Fannie Mae and Freddie Mac owned loans are also eligible for loan modification or refinancing as stipulated in the Stimulus.

- Obama’s Plan also covers the cost of professional counselors who can provide you with advice on how to approach your lender, including helping represent you if needed. You can contact the Housing and Urban Development department (HUD) and utilize their services free of charge to you.

Discover important tips and facts regarding Obama's recent stimulus package. Find out if you qualify at: Obama's Stimulus Package.