A whopping $75 billion has been allocated for the new Homeowner Affordability and Stability Plan that was 
just passed. This program is designed to offer real help to the nearly 9 million homeowners facing financial hardship. Not all borrowers will qualify under the provisions of this new plan, and the loan modification program is based on voluntary lender participation. So who will qualify for this new loan modification plan and which lenders will be participating? Here is some helpful information for interested homeowners.
President Obama announced that goal of this new Homeowner Affordability and Stability Plan is to halt the ever increasing foreclosure and default rates that are crippling the nation's economy. To help induce lenders and servicers to participate the Plan allows for monetary incentives to those who offer aggressive loan modification programs to their borrowers. The lenders will receive a $1500 payment for each modification and servicers will receive a $500 payment which will hopefully entice them to cooperate on a large scale.
Here are some basic guidelines for eligibility:
- You must reside in the home as your primary residence
- Only applies to first mortgages, second trust deeds are not included in the plan
- You must be able to prove your income
- Your current monthly payment must equal at least 31% of your gross monthly income
- Not required to be delinquent on your mortgage to participate
- No charge to apply-this is a Free loan modification program
So, how does an interested homeowner begin the loan modification plan application? Begin by gathering 
all of the required documents and completing the loan modification application forms. Borrowers must be able to prove that they will be able to afford to pay and maintain the new payment. They will be asked to complete a financial statement detailing their income and expenses, document a financial hardship situation and present all of the required paperwork to their lender.
Which banks are participating in this new loan modification plan? The program is on a voluntary basis, however there are provisions that allow for the Federal government to share in the costs of the payment reduction as well as a portion of any losses incurred due to principal reduction. Lenders who willl benefit from the stimulus package will be required to participate. Most banks and servicers are expected to begin offering this new program after the implementation in March 2009.
Homeowners who pay their new modified mortgage payment on time will be rewarded with an incentive of $1000 a year, up to $5000 that will be credited directly towards their mortgage balance. Now is the time for struggling borrowers to begin learning more about how to apply and qualify for this new loan 
modification plan. Homeowners who know how to submit their paperwork properly will have a jump start on getting the help they need and deserve.
You can get the help you need to understand and apply for the new loan modification plan by ordering and downloading the best seller, The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to apply for the Obama federal loan modification plan.
Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com
