Wednesday, March 4, 2009

Clarifications On Loan Modifications

The Obama administration's foreclosure prevention program is designed to help "at risk" homeowners remain in their homes. Below are some of the requirements in order to be eligible for this program:

obtained their mortgage before January 1, 2009;
first mortgage of less than $729,500;
live in the property;
fully document their income by providing tax returns and pay stubs;
sign a statement of financial hardship; and
go for counseling if their total household debt -- including auto loans, credit cards and alimony -- totals more than 55% of their income.

The modification program will be in effect until the end of 2012, but loans can only be adjusted once. Contact your loan servicer (the company to whom you make your loan payments) to see if you qualify.

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