Loan Modification Details

Today President Obama laid out the loan modification details to Americans. This program for modifactions is to help Americans who are in risky loans, ARMs or who's mortgage exceeds 31% of household income.

Lenders who modify loans will be given $4500 by the government. Thus creating incentive to work out these loans with folks who are underwater.

Only 1st mortgages can be modified.

Below are the guide lines for the program.


1. You must live in your house, condo, or co-op. (Manufactured homes not attached to a foundation don’t qualify.)
2. If you have abandoned your home or rented it out to help make your mortgage payments, you won’t be eligible.
3. You’ll have to verify it’s your primary residence with a tax return, credit report, utility bill or other document.
4. Borrowers in bankruptcy may be eligible.
5. Your loan has to be less than $729,750 for a single family house; for multifamily homes the cap rises to $1.4 million for a four-unit house.
6. There are no limits on the ratio of the size of your loan to the current market value of your house: Homeowners who are substantially “underwater” can apply.
7. You also have to show that you’re either in default or about to face default. And you’ll have to sign an affidavit saying you can’t afford your mortgage.

For questions regarding loan modification please contact a lender. I have been working with Gina Roberts Lemelin for over 8 years and highly recommend her.She is with Chase Mortgage and her number is 770-540-6471