Apply For Obama Loan Modification Programs and Manage Your Funds Easily
A decision to apply for the Federally funded Government home affordable modification program requires proper understanding of the program. The Obama loan modification programs were introduced in the year 2009 by the Obama administration to free people from financial strain they are experiencing from the monthly mortgage payments on their home. It is a federally funded initiative in partnership with several lenders mainly Bank of America to offer people a reduced monthly mortgage payment scheme thus enabling people suffering from financial stress to get back their life on track. They are:
- The mortgage loan being paid off on the property should be ones primary residence.
- The mortgage loan should have been taken not prior to 1st January, 2009.
- The monthly payment on the mortgage should exceed 31% of the gross monthly income of the person. The current payment will include everything starting from the principle, interest, taxes, home owners insurance and other dues.
- The loan should not exceed $ 729, 750.
- The question to be asked is whether one is on the verge of default or at risk of default.
When one qualifies for the home affordable modification program guidelines the next step is to collect the required documents and financial data to prove that one is actually in need of a loan modification. The documents required are:
- Statement by the borrower
- hardship letter or affidavit
- financial statement which includes proof of income, two recent pay checks, award letters, previous two months bank statements, tax returns.
- The B of A Loan modification program requires one to meet certain debt to income ratio and disposable income criteria to get a modified loan worked out.
- A complete and accurate B of A loan modification program application will be verified by the Bank of America and so any inaccurate details will lead to a rejection of the loan workout scheme.
When all the documents have been gathered, the next step is to contact the lender and apply for the Government home affordable modification program. The lender will review eligibility of the applicant and during that process the foreclosure process,if applicable, should be stopped immediately. The Bank of America loan modification program can help an individual avail the benefits of loan modification however, before applying for the plan, one should try and understand the Obama loan modification program clearly and what goes into getting qualified for the process.
However, to apply for the BOA loan modification programs one has to meet the parameters set in the HAMP loan modification program eligibility.
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