Obama's Loan Modification Plan

Obama's Loan Modification Plan is aimed at assisting homeowners refinance or modify their loans for more affordable mortgage payments.

The unfortunate aspect is a large portion of the funds go to the banks and they're not obligated to heed. Only individuals who are not behind on their mortgage account and whose loans are with Fannie Mae and Freddie Mac are eligible for Obama's Loan Modification Plan. The plan is leaving millions of U.S. homeowners in danger of facing foreclosure defenseless & out of the plan.

Here are a few general customary criteria for basic eligibility for this program:

1. The home must be your primary residence

2. Cannot be used for second mortgages

3. Prove Income

4. Your current home loan must equate to 31% or more of your gross monthly income

As many as 6 million families are projected to experience foreclosure in the next couple of years.

The bleak and quick drop in the economy and in the housing market has caused overwhelming repercussions for homeowners throughout the the United States . Millions of steadfast families who pay their monthly mortgage payments on schedule have had the value of their property fall and under the circumstances are now incapable to refinance to lower mortgage rates. Meanwhile, millions of workers in the United States are having a hard time staying current on their mortgage payments after having their hours cut or being terminated. In the last 14 months alone five million plus jobs have been eradicated and millions of hard working families are now applying more than 40 or 50 percent of their income towards their monthly mortgage payment.

How To Modify A Loan
When a loan modification application is presented by a homeowner, it is carefully analyzed to decide the profitability to the investor or the possibility of loss. The "Net Present Value Test" is used to decide what will provide more cash flow to the investor-Foreclosure or Modification. The homeowner's best interest is not part of the decision making process. It is completely based on what is more financially rewarding to the investor. If modification is not in the best interest of the investor, they will deny your application.

For this reason legal assistance is available to homeowners.
For more information regarding Home Loan Modification Please call Janian and Associates at 877-369-4529 or visit: www.JaninAndAssociates.com