Obama Loan Modification Features - What to Remember When Applying - Part 9 of 10

To fully understand how the Obama Loan Modification program works you must understand these features of the plan.

Payments for the Depreciation of the Price of the Home: As an incentive for lenders/investors modifying more loans, they will be compensated to offset losses resulting from the decline of the price of homes. This will be in the form of a single payment on every loan modified and still active in the Plan.

Deeds-in-Lieu and Short Sales Payments: Rural Housing, FHA, and VA loans will be taken care of by other standalone modification plans run by those particular agencies. In a parallel incentive Plan, the FHA's Homeowner Belief plan of refinancing shall be included.

Second Lien Removal Payments: To reduce the debtor's overall indebtedness and improve loan performance, additional incentives will be provided to extinguish junior liens on homes with first-lien loans that are modified under the Plan.

Government Loan Plans: FHA, VA and rural housing loans will be addressed through standalone modification Plans run by those agencies. FHA's Hope for Homeowners refinancing Plan will also be included in a parallel incentive Plan.

The next part of this series deals with financial calculations of the Net Present Value NPV and how it relates to receiving a loan modification under the Obama loan modification program. The next article can most likely be missed without affecting your chances to receive a loan modification. If you want to begin back at the begging of this article series you can start at Part 1 of this series.

  Obama Loan Modification NPV Calculation - How Your Lender Evaluates You - Part 10 of 10

Do You Qualify and How to Apply:

To see if you qualify and learn how to apply for Obama Loan Modification Program you can visit:
http://www.obama-loanmodification.com

By Frank Stevenson

Which provides you with valuable resources including:
- Top 10 most frequently asked questions about the program
- Up to date guidelines on if you qualify
- Insider tips
- Free sample hardship letter

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