Obama Foreclosure Prevention programs

This is a comprehensive guide to Obama’s loan modification program. Discover if you qualify and how to apply.

Pooling and Servicing Agreements:

The guidelines of the Plan represent industry standards for mortgage loan modifications that are in regular agreements of servicing, including pooling and servicing agreements (PSAs) governing private label securities. Participating lenders must consider every loan eligible under the guidelines of the Plan unless it is not allowed by the rules of the other investor servicing agreements and/or applicable PSA. Participating lenders must use reasonable efforts to take away any ban and obtain approvals or waivers from all parties necessary.

Date of Creation for Loan to be Modified:

Any mortgage modified under this Plan is required to have been created on or before January 1st, 2009.

Plan Termination:

New debtors will be able to join until 12/31/2012. Plan installments will be made for up to 5 years after Domestic Economical Modification entry date. Monitoring will go on throughout the duration of the Plan.

Conditions:

o The domicile must be occupied by the owner and be a single-family, 1-4 unit property. This does include condominiums, cooperative and manufactured domiciles bound to a foundation and regarded as a real property under state law.

o The domicile must be the owner’s main home as verified by tax return, credit report, and other official documents like a utility bill.

o The domicile may not be owned by an investor.

o The domicile may not be vacant or condemned.

o Bankrupt debtors are not automatically excluded from consideration for a modification

o Debtors that are active in a litigation involving the mortgage loan are able to qualify without waiving their legal rights.

o First lien loans are required to have an unpaid principle balance less than or equal to:

- 1 Unit: $729,750

- 2 Unit: $934,200

- 3 Unit: $1,129,250

- 4 Unit: $1,403,400

Procedure for Properties in Foreclosure:

Any action of foreclosure will be temporarily deferred during the trial period or while the debtors are being considered for other foreclosure prevention arrangements. If the Domestic Economical Modification or other foreclosure prevention arrangements fail, then the actions of foreclosure may continue.

Current LTV:

For the purpose of eligibility, there is no minimum or maximum LTV.

Loan Type Repudiations:

Loans can be modified by the Domestic Economical Modification Plan a maximum of one time.

Subordinate Financing:

Although subordinate liens are not considered when calculating the Front-End DTI, they are when calculating the Back-End DTI

Petition of Debtors and Incoming Inquiries:

Servicers can continue to follow any established expressed contractual restrictions regarding the solicitation of debtors for modification.

Discover How to Apply

To see if you qualify and learn how to apply for Obama Loan Modification Program you can visit:

http://www.obama-loanmodification.com

Which provides you with valuable resources including:
– Top 10 most frequently asked questions about the program
– Up to date guidelines on if you qualify
– Insider tips
– Free sample hardship letter

On a scale of 1 to 10: How well did Obama’s foreclosure prevention program work?

10 – It was a resounding success that is going to stop a second downturn in the housing market from occurring. (Which was the goal…)

1…. Epic Failure!!

Many people,in fact most,are still waiting for the $8000.00 tax credit as are those for the tax credit for trading in their gas guzzlers.It did put them deeper in debt though,so he did achieve something,didn’t he?

Panel:Foreclosure Prevention Program Isn’t Working

Foreclosure rate steadies
The number of people facing foreclosure is nearly flat from a year ago.