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He allocated 75 billion dollars to curtail the all-time high number of foreclosures in the United States.
If you are facing foreclosure on your home because the payments have become too difficult, you might qualify for a federal loan modification.
The government is giving financial rewards to banks to encourage them to rework loans for millions of people just like you who are having trouble paying their monthly mortgage payment.
The lenders actually rewrite the whole mortgage to lower the payment, possibly lowering interest rates, lengthening loan terms, and reducing principal.
The loan has to be backed by Fannie Mae or Freddie Mac, and your lender has to be on the approved list.
The date on this original loan has to be on or before January 1, 2009, and the amount can't go over $729,750.
The home must be where you live, not a vacation home or a rental property.
If you qualify for the program, it will not matter if you are already in default on your loan; late fees can often be forgiven.
There are several qualifications, but the main ones are related to your financial situation.
You must be experiencing a verifiable case financial hardship.
Something you had no control over had to have happened and caused you to get in trouble on your mortgage.
You have to have paperwork to back up all the figures you give them.
You also have to present the financial documentation that shows you can make the new payment.
You must convince the lender that you are committed to make the new payment, too.
If you want to save your home, you should investigate the possibility of obtaining a federal loan modification.
To increase your chances of success, do your homework and carefully prepare your budget information and documentation before contacting your lender to inquire.
You can only apply one time, so you need to do it correctly the first time.
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