Eligibility Requirements Under Obama’s Loan alteration Program
Do you have questions about Obama’s loan alteration program and who is eligible to participate in it? Are you wondering which financial institutions are providing loan alteration options using the $75 billion allocated by the Treasury Department? Keep reading for some answers to these questions and more.
Lender participation in the federal program isn’t required, but many financial institutions have already signed up and many more are eager as modifying a loan is a much preferred different to foreclosure. Also, under Obama’s loan alteration setup, lenders are being offered incentives to participate in this plan that is expected to protect four to five million American homeowners from losing their homes.
The federal loan alteration program has the following requirements for eligibility:
– the loan being alternation must be a first mortgage on your dominant residence
– the loan being alternation must represent a monthly payment > 31% of your monthly income
– the loan being alternation must not be delinquent
– you must be able to provide proof of your income
In order to course of action your application for the federal alteration program, you must provide the lender with a detailed hardship letter, a thoroughly completed application form, a detailed income statement, and proof of your debt. There is no fee associated with applying for alteration under the Affordability and Stability Plan.
Not only are the lenders who agree to participate in the federal loan alteration system being provided incentives, so too are homeowners. For example, if you pay your newly alternation loan as required for five years, you may qualify to receive a $5,000 bonus.
Don’t procrastinate applying for relief by the federal loan alteration program. Avoid the rush and unavoidable glut of paperwork that’s going to start rolling in and get in front of your lender before the crowd.