People who have been suffering due to the recession and who are unable to keep up with their monthly mortgage payments may end up losing their homes. To help individuals save their home from getting foreclosed, the government has taken some steps and released a plan called Federal Loan Modification Program.

9 million customers are expected to benefit from this program and save their homes from getting foreclosed. To be eligible for this program:

• This Home Affordable Refinance Program is applicable for mortgages before January 1st 2009
• The maximum mortgage due amount should be less than $729,500
• The home must be the main house of the homeowner
• Submit your recent pay stubs and tax return proofs
• Draft a hardship letter explaining why you have been unable to keep up with your monthly mortgage payments

Loan modification is possible using this program. You can also refinance your existing home loan. The monthly mortgage rates applicable will not be more that 31% of your gross income. To help you in your monthly mortgage repayments the interest rates may be decreased up to as low as 2% in order to meet the “Making Home Affordable" plan guidelines. There is no extra charge or any hidden fee in order to refinance or modify the mortgage in these programs. A lump sum can be made if the monthly mortgage payments are too low to balance with the loan amount.

Makin monthly mortgages payments on time will result in reduction of the principal amount up to $5,000 till 5 years. Later, the interest rates can be adjusted according to the market rates. The main aim of these home affordable modification program is to help you make up with your current financial situation by allowing you low interest rates for a limited amount of time. Only one loan modification is allowed to each home owner.

A total of $75 billion dollars have been passed under this plan to help people save their house from getting foreclosed. Due to the “Making Home Affordable Program” by the government, a dramatic fall has been seen in the housing market. Because of this plan the housing market may be affected right now, but it will help the home market business grow later. Not only everyone is going to save money through this program but also many homes will be saved from getting foreclosed.

Apply today to find out if you quality for the Obama loan modification program