How to Avoid Foreclosure with Obama's Home Stimulus Plan

Are you in default on your home mortgage? Does it seem like foreclosure may be the only option you will have? Sometimes the late fees start piling up, and you are required to produce a large sum of money to bring the loan current and stop the foreclosure. Obviously, if you had a large sum of money, you more than likely would not be behind on your mortgage!

President Obama's Home Stimulus Plan has created a way for folks like you who qualify to get a loan modification and avoid foreclosure.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• computer is helpful
• Your pay stubs, bills, and all other income and expense documentation

1. The first step is to determine if your lender is on the Approved Lender List. The List includes: Aurora Loan Services, Bank of America, Bayview Loan Servicing, CCO Mortgage, Carrington Mortgage Services, Chase, Citimortgage, Citizens First, Countrywide, First Federal Savings and Loan, GMAC, Green Tree Servicing, Home Loan Services, IBM Southeast Employees Federal Credit Union, Lake National Bank, National City Bank, Nationstar Mortgage, Ocwen Financial Corporation, RG Mortgage, Residential Credit Solutions, Saxon Mortgage Services, Select Portfolio Servicing, Technology Credit Union, Wachovia, Wells Fargo,Wescom Central Credit Union, and Wilshire Credit.

2. Next,examine your specific mortgage loan. Is it a loan on your primary residence? Do you live there more than 50% of the time? Is your loan serviced or backed by Fannie Mae or Freddie Mac? Was it signed on or before January 1, 2009? Check the exact amount to see if it is no more than $729,750.

3. Now, look at your financial situation. First of all, is your payment more than 31% of your gross monthly income? This payment amount includes property taxes, homeowner insurance, and homeowner association dues.

4. The crucial points you will be seeking to present in your application for a loan modification involve your income situation. First of all, what caused the financial situation that kept you from being current with your mortgage? This program requires that a homeowner be able to show that they were a victim of financial hardship. This means that something over which you have no control has happened to lower your income or raise your expenses to make your housepayment impossible to manage. This could be job loss, medical bills, divorce, military service, death of a spouse, or something else. This situation must be presented in a Hardship Letter.
   
   You also have to do a good job of making your lender realize that have the income to sustain the modified house payment in the future. This is equally, if not more, important. So, don't focus on just being a sad sack. They may feel terribly sorry for you, but they are still judging your potential stability for the future.
   
   Both of these application requirements must be documented totally by the appropriate paperwork.

5. Before you begin to fill out the paperwork, you need to do some homework. Don't contact your lender about the Home Stimulus Plan until you have familiarized yourself with the application guidelines and filled out your application materials accordingly.

6. Only after you have completed everything according to the specifications, then you can contact your lender. The reason that you wait until you have all your "ducks in a row" is that you are only allowed to apply once for a Loan Modification under this Home Stimulus Plan, so it needs to be right!

Tips & Warnings

• There may be other requirements for application imposed by your lender or the federal program. This is just an overview.

Resources

• government Home Affordable Mortgage Website

[susanhorton72]

on 10/13/2009 As always, solid advice!

[ghostwoman]

on 9/4/2009 Wonderful article on how to avoid foreclosure with Obama's stimulus package.

5 stars and recommend.
Awesome job!