Why Obama Home Loan Modification Was Launched

By Author: sally mansell
Total Articles: 44
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It is a common problem of upside down mortgage faced by every citizen. The high inflation has resulted decrease in the property value and unemployment. People who have mortgage plan are facing this serious problem. Looking at this problem the president Barrack Obama launched a program called Obama home loan modification program.As the name indicates this program makes some modification in the loan plan.
Types of Loan Modifications:
The modification program offered by the president Barrack Obama does not pay the loan plan on your behalf. But is makes some changes in the loan plan. There are two basic types of changes. Using the loan modification the lender is convinced to increase the loan duration like if the loan plan previously was of 12 months now it will be increaed to 24 months or till the borrower is in better financial condition. In the second type of loan plan the interest rates are decreased for some specific period of time like if the loan plan is of 12 ...
... months then the interest rates is decrease for 6 months or so. There is an additional change that is rarely made. In this type of change the interest rates are decreased for the entire loan duration. This type of change in Obama home modification loan is done only if the borrower is at the edge of meeting bankruptcy or is facing very serious bad financial condition.
Specification:
Some people think that these loan modifications are available for everyone. But the Obama home loan modification plan is not offered to everyone. They have special criteria for it. They check with their special sources if you are eligible for this plan. Sometimes the borrowers try to put fake application. But he can be easily exposed by using his bank statement or the job detail. This program is only offered to people who are paying to the mortgage plan along with the bad financial condition. You have to show all the details of you assets, bank accounts, salary detail, and expense detail along with the detail of mortgage you are paying before you apply for this modification program.
Things you should know:
The benefits of Obama federal loan modification are offered only for the house in which you are currently staying. Any other house which you have lent on rent cannot avail this program. Moreover some people mix this modification program with the refinance program. The refinance is completely different thing.