Obama's foreclosure prevention plan has saved the day for 12% of eligible borrowers who have been placed into trial modifications of the plan by mortgage servicers. According to a progress report released by the Treasury Department on Wednesday, 360,165 homeowners who were at least two months behind in their payments were given relief through August. These numbers have increased from only one month ago when just 235,247 borrowers, or 9%, were in trial modifications.
Originally, the Obama administration came under fire for theHome Affordable Modification plan'srocky start. However, it seems that the plan has found some grounding andis on track to meetitsoriginal goal of having 500,000 loan modifications under way by November 1, 2009. Overall, the $75 billion initiative is projected to help up to 4 million homeowners.
How can you qualify for the Home Affordable Modification plan? You must meet the following criteria:
- Your home must be your primary residence.
- The amount you owe on your first mortgage must be equal to or less than $729,750.
- You must be having trouble paying your mortgage due to a significantly-increased mortgage payment or reduction in your income since you received your current loan. A hardship that has increased your expenses also helps you qualify.
- You must have received your current mortgage loan before January 1, 2009.
- Your payment (including principal, interest, taxes, insurance, and homeowners dues) must be more than 31% of your current gross income.
Those who are qualified are put into three-month trial modifications before their adjustments is deemed final. If you meet the criteria, maybe Obama's plan can modify your loan too.
