If you have fallen behind in your mortgage, or your home's market value has decreased, you might qualify for assistance with the plan. Here is what you need to know before you begin the process of applying:
* Wells Fargo offers many programs, depending on your situation, which can include modifying your existing loan, extending the terms of your loan, a short sale, obtaining a partial claim on an FHA loan, or transferring your deed to them instead of foreclosing.
* In addition to completing an application and submitting it to Wells Fargo for receiving a loan modification, a crucial component that needs to be included is a hardship letter. While both the application and the letter must be accurate and detailed, your letter needs to explain your financial situation, the reasons behind it, and your plan for getting out of it through obtaining a lowered mortgage payment. Your ability to effectively negotiation must be apparent for the bank to agree to help you, as you only get one chance to apply!
* You will need to submit the reasons for your hardship, the terms and conditions of your current loan (for refinancing purposes), a list of expenses and income, (including all credit debts, bank statements), and the exact debt-to-income ratio that breaks down what your debt is in comparison with your income.
* When applying for a program, do your research ahead of time and be familiar with all of your financial information so that you can accurately answer the bank's questions and save time on their part and yours. Let the bank see that this is a priority for you, so they can make it theirs as well.
* Your mortgage loan balance must be over 105% of the market price, the loan must be owned by Fannie Mae or Freddie Mac, and you must meet all the requirements as stipulated by this new package in order to receive a loan modification. You can be looking at lowered payments up to 31% of your gross monthly income.
About the Author:
For tips and facts about how you can benefit from Obama's Home Stimulus Plan - or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net
Author: Joe Emery