Qualifying for the Obama Administration’s New Federal Loan Modification Plan

If you are a homeowner struggling to pay your monthly mortgage payments and worried about possible foreclosure, you should investigate whether or not you qualify for the new federal loan modification plan implemented by the Obama administration. This new federal loan modification program is offering help to up to 5 million homeowners with a pool of funds of around $75 billion.

Even if you were previously denied by prior mortgage lenders, you may now be eligible for assistance under Obama's new plan. If you can demonstrate that you are facing financial hardship caused by downsizing or layoffs, increased expenses or high interest rates, you may find help to catch up with your mortgage. All you have to do is prepare the required paperwork and apply to a participating bank that will review your application and needs.

Under the new program, these are some of the requirements to qualify for assistance:

- your mortgage is for your primary residence
- your mortgage debt does not exceed $729,750
- your mortgage payment exceeds 31% of your gross income
- your mortgage loan was closed prior to January 1, 2009

If you meet all of the requirements listed above, you need to complete an application and provide your choice of lender with all other required paperwork including proof of income and expenses. Each application for loan modification will be considered based on your individual circumstances.

To get started on letting go of your fears of foreclosure and move forward with a monthly mortgage that you can afford, contact your lender to start the application process. The sooner you start the process, the sooner you are on your way to financial freedom. But be sure to take your time as you complete the application thoroughly and completely and error-free to avoid delays or denials.

For detailed facts and essential tips about how you can get approved for a Loan Modification, visit this simple, easy to understand loan modification guide and resource:Home Loan Modifications.