Obama Foreclosure Bailout | Stop foreclosure with a Loan Modification

Oct. 18, 2009 - PRLog -- If you are one of the thousands of Americans facing foreclosure right now you may be wondering how you're ever going to get out of the situation that you're in. One way that many homeowners are taking advantage of is loan modification.

A loan modification is a process in which a borrower and lender agree to modify the terms of the mortgage loan. This usually includes lowering the borrower's interest rate, lowering their mortgage payment and in some cases even lowering their principle mortgage balance.

By doing this the lender avoids having to pay an exorbitant  amount of money in foreclosure proceedings and the homeowner gets to stay in their home. This benefits both parties and is often a great way to fix a very bad situation.

As to whether or not you qualify for a loan modification that will greatly depend on your financial situation. The most important factor in getting approved is making sure that your debt-to-income ratio fits within the guidelines of your bank.

A good rule of thumb is that your mortgage payment should not exceed one third of your gross monthly income.  If it does then some adjustments to your income will probably have to be made. Many times simple solutions can be found that will help you fit into your lender's guidelines for loan modification such as renting out a room or even showing additional income from other family members that live in your house.

The best way to achieve a loan modification is by having someone who understands what the banks are looking prepare your financial worksheet and loan modification application for you. This way they will make sure you don't waste weeks or even months preparing documents just to find out you don't qualify because you make "too much money" or "not enough money".

To find out if you qualify for a loan modification visit http://www.ObamaForeclosureBailout.com

# # #

ObamaForeclosureBailout.com helps homeowners facing foreclosure by connecting them with real estate attorneys and loan modification experts in order avoid losing their home to foreclosure. Find out about Obama's foreclosure bailout plan and see what it takes to get a loan modification. Lower your interest rate, lower your monthly mortgage payment, and even qualify for a principle reduction.

http://www.ObamaForeclosureBailout.com