Will President Obama's Stimulus Loan Modification Be Able to Save Your Property?

Stimulus loan modification introduced by President Obama is developed on the concept of affordability. This modification programs aims at preventing foreclosures and bankruptcies arising due to inability to repay loans. The previous loan modification program introduced was unsuccessful as it was not able to reduce the monthly EMI.
However, 2009 stimulus loan modification program has taken care of this aspect hence its success this past year.

How does President Obama's Stimulus Loan Modification Program work?

* Sets upper limit on monthly EMI to be paid: Your monthly installment in no case shall exceed 31% of your gross total income. On the other hand your total credit expenses (car, credit card, home mortgage etc) cannot go beyond 55% of your EBT (earnings before tax).
* Only loan insured by Freddie Mac and Fannie Mae are eligible under this program. Even if your loan does not fulfil this requirement you can still apply for a refinance with Freddie Mac and Fannie Mae as long as you fulfil the other criteria.
* You can instantly apply for a lmodification or refinance as long as the mortgage value of your property is more than 105% of its actual market value.
* Unlike the olden days, you need not pay a huge amount to private "specialists" for getting your loans processed. Instead you can approach professional counsellors appointed by Housing and Urban Development Department of US Federal Government to offer guidance on presenting your case to the lender. The best thing is that these professionals would be paid by the Federal Government on your behalf.