Can Obama Foreclosure Help Keep You In Your Home?

Since the real estate meltdown a few years ago many homeowners have found themselves facing foreclosure on their home.
 
Because the mortgage industry had implemented requirements for approval that were so much more lenient than in any other time in history, many people

simply over extended themselves with their mortgage payments.
 
Even though they could afford their monthly payments at the time few people had enough funds in reserve to cover the "rainy day" segments of their life.

 They never accounted for the loss of a job due to the poor economic conditions that we have experienced over the last few years.  Likewise few homeowners truly planned for the rise in their house payments when their adjustable rate mortgage (ARM) rate increased after a year or two years into their mortgage.  This coupled with few raises on their job, due to the poor economy put people into some dire economic straits.

Others have found themselves dealing with unexpected health issues which has either caused a reduction in their income or a huge increase in expenses due to the rising cost of health care.

Whatever reason has brought you to the brink of foreclosure you still need help in trying to salvage your home.
 
One such method of help is what's generally referred to as the Obama Foreclosure Help plan or Obama Mortgage plan.  You may or may not qualify for help through the loan modification portion of this plan.
 
Here are some terms of the loan modification plan to help you decide if you qualify:

•    You must have income from some source
•    You must own AND occupy a one to four unit residence
•    Your loan must have started prior to Jan. 1, 2009
•    Your loan must be owned or backed by Freddie Mac or Fannie Mae
•    Your unpaid mortgage principal balance must be less than $729,750
•    Your current mortgage payment amount must be more than 31% of your current gross monthly income
•    You will have to be able to show that a major change has happened in either your income or your expenses which have or will affect your ability to pay your current mortgage payment

If your situation meets this criteria then you may get your lender to lower your interest rate by as much as 2 percent.  Their goal would be to get your

monthly payment into the 31% to 38% range of your monthly income.
   
The Obama Foreclosure Plan will not lower the amount you owe on your mortgage ,but rather lower your monthly payments.  If you can qualify and obtain a loan modification you will have a lower monthly payment because the interest portion of your monthly payment will be less.

If you are not behind on your mortgage payments you may still qualify for a loan modification if you can show a lower income amount due to current economic conditions.

You may also qualify to have your loan refinanced into a lower fixed rate mortgage vs. an adjustable rate mortgage.  This could significantly lower your monthly payments.  A lot of people who are behind on their mortgage payments and inching close to foreclosure may not be able to qualify for a refinance of this type and will need to investigate further.

If you would like a company to assist you in this process, you can try -> simple application online or call 888-766-3693 to get help over the phone.

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