A step-by-step procedure to get a quick response from mortgage bank most homeowners should follow is:

1. Request for a Home Affordable Modification Program consideration, by filling up the RMA - Request for Modification and affidavit.
2. Within about 10 days, a package will be sent to you in acknowledgement.
3. Fill up the applications correctly to show that all the criteria for approval guidelines are being met.
4. Return the package along with all documents such as hardship affidavit and pay stubs etc.
5. Make sure you include all the documents necessary. Upon review a notice of incomplete documentation may be sent out.
6. Homeowners receive notice accordingly if they qualify.
7. Inform qualifying borrower they have to undergo a trial period plan of 3 months.
8. help for ineligible borrowers involves another program. The HAFA or Home Affordable Foreclosure Alternative is a streamlined short sale process where the homeowner qualifies for a $3000 transition fee.

If the trial period completes successfully, the federal loan modification program is made permanent and borrower does not have to reapply or update their information. Distressed homeowners can easily meet the FHA loan modification requirements and it is the best choice to avoid foreclosure but few people realize this. The ‘hope for homeowners program’ is meant to help the troubled homeowners who are unable to pay the current mortgage.

The Federal loan modification program forms the major portion of the benefit for homeowners. This program is for people who have lost their jobs, experienced a high increase in interest rates or have a large home. Homeowners can look forward to 3 – 4% interest rate after loan modification or as low as 2% in some cases.

You will definitely need expert advice if you have opted for the Bank of America loan modification Program. A bank officer will review your documents for approval. To qualify for a successful mortgage modification under HAMP you must meet income to debt ratio, target payment and other calculations using a standard approval formula. Calculate qualifying income and income to debt ratios accurately for quick approval.

The Obama loan modification program is for people who are able to pay their mortgages but are unable to avail lower interest rates perhaps due to a decrease in their home value. Loans held by Fannie Mae or Freddie Mac can refinance their existing mortgage for lower interest rates.