Obama And The Obama Loan Modification Program


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If you’re having a hard time paying off your debt due to the bad economy, you are likely feeling more secure due to Obama’s new loan modification plan. If you live in America, you are likely affected by the harsh economic climate that the country is going through right now. The housing market is one big factor in the economic downturn the country is facing nowadays.

In order to fix the damage, this new loan modification plan was created. Everyone on both sides of the market should be appropriately assisted with the plan. In this day and age, almost five million people in America are in danger of having their home foreclosed on. This plan will relieve them and the rest of the market significantly.

If you own a home, you can use this plan to get your large home loans restructured. You can lower your interest rate by a large amount, and get an extension on your loan to give you more time. You can get your loan term extended around 40 years, and you can allot around a third of your income to go to your debts.

However, there are certain criteria that an individual needs to satisfy to qualify for the home loan modification program. The first condition is that only those individuals, who have been affected by job-cuttings and spiral lay-offs because of recession, are eligible for the program. The second thing is that a person needs to have a principal remainder of not more than $729,750. Also, the debtor will be required to sign an affidavit proving his financial hardship and will have to furnish essential documents such as his income statement.

The program is also beneficial to the lender, since they will receive a cash incentive for each loan that is approved for modification. In addition, lenders will not have to spend time and money on foreclosure processes. Although they will receive less total money for the loan repayments, they will be paid promptly each month.

The government, with the help of businesses and banks, are trying their best to help out debtors who are at risk of foreclosure, so that they can get back on their feet and pay off their debts, thereby helping the lenders save money.

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