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Digital News Report – The Obama Loan Modification Program was designed to help all homeowners on the verge of losing their home. The program has gone through several modifications including a concerted effort to save homes in hard-hit states like California, Florida, Michigan, Florida and Arizona.
Many homeowners in Northern California, including the Bay Area, have found themselves in limbo. The banks are backlogged and are unable to keep up with the foreclosures. This could be good news for homeowners facing home loss.
The Obama Administration has set aside $1.5 billion to use “innovative” efforts to save homes. Banks including Citimortgage, Chase, Bank of America and Wells Fargo are participating in the program.
Loan Modification Qualifications
The program is free to the homeowner and it is free to have a consultant determine whether you qualify. Here are some simplified qualifications:
1) Homeowners must be in financial trouble
2) Loans must have originated before January 1, 2009
3) Principal, interest, property taxes and homeowner insurance must exceed 31 percent of the gross family income.
4) Homeowners must reside in the home (duplexes, triplexes and quads qualify but owner must reside in one of the units).
There are other rules that apply and homeowners are encouraged to seek help from a certified counselor.
The government is also providing free “homeowner events” throughout the United States. Government officials will be on hand in Atlanta Georgia this next weekend. Next month there will be events in California, Arizona, New York and other states.
By: Tina Brown
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