Up to 5 million homeowners are expected to be helped stay in their homes under the recently announced Obama Administration’s foreclosure relief plan. Announced March 4, the plan is designed to allow some homeowners to refinance into lower rates (up to 105% of current value which helps those whose value has fallen) or others to have their loans restructured so that payments are no more than 31% of the borrower’s gross monthly income.
The basic criteria for modification qualification includes:
- You must have obtained your mortgage prior to January 1, 2009
- Your mortgage cannot exceed $729,500
- The property must be your primary residence; in other words, you must live in the home more than 6 months out of the year
- The loan must be fully documented with proof of income
- You must be willing to sign a statement of hardship
- If your debt exceeds 55% of your income, you may be required to attend credit counseling
If you have any questions about whether a refinance or loan modification will work for you, please give us a call or email your questions. We will gladly provide a complimentary estimate of current value for you and give you more information about modifications.
Colleen Fischesser, Washington State Designated Broker & Owner of RE/MAX Select R.E; Member NWMLS, SKAR, WAR, Voted "Best in Client Satisfaction" Seattle Magazine 2006,2007 & 2008. Representing home Buyers & Sellers for nearly two decades. 
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To be qualified in loan modification having live for almost 5 years over is always a basic requirements. Thanks for sharing other basic criteria for loan modification.