Plans 125 Which Is Also Known As Obama's Loan Modification Plan

Jan. 20, 2010 - PRLog -- To everyone who was paying attention, many homeowners needed more bailout help in 2009 than the Wall Street bankers. Help did finally arrive in Obama’s Loan Modification Plan. It shared several names including HARP and the 125 Plan. What’s news is the administration’s Loan Modification Plan allows homeowners to refinance their current mortgage payments up to that of 125% of the present property value of the property. This is critical with many properties losing most or all of their equity over the last year.

Among the most important features of Obama’s Loan Modification Plan include:

1. It now let’s mortgage holders refinance their current mortgage payments up to an amount equal to 125% of the present property value.

2. In order to do this, a mortgage holder needs to up to date with their existing mortgage payments and the mortgage must have insurance through one of the mortgage companies that are government backed. Being current, is defined under Obama’s Loan Modification Plan, as not having been no more than 30 days late on 1 payment in the past 12 months.

3. This loan modification plan requires the property have been purchased prior to or on January 1, 2009 in order to qualify.

4. The value of the home must have dropped due to the homeowner not refinancing.

5. The President Obama's Loan Modification Program has a limit on loans put into effect that is at $417,000.00 currently.

The part of President Obama’s Loan Modification Program (http://www.refinanceitt.com/loan-modification/obama's-loa...) called HARP may be the solution that so many Americans have been waiting for. Many of the government refinance programs from the past such as "Hope for Homeowners" and the "FHA Secure" weren’t able to help many average homeowners to refinance because they didn't qualify because what was called financial lending program "glitches". Still today to qualify in an FHA loan modification program might still be a great fit for some homeowners who have their credit scores under 620, but the homeowner must have proof to show factors for compensating. Just like conventional and FHA mortgage loans, homeowners under the current loan modification program must provide pay stubs and be able to show documented proof that they will be able to pay the new payment amount without problems.

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