The economic situation in the United States has left many homeowners without hope of keeping their homes. They feel certain that foreclosure is the only option they have. Foreclosure rates are at a level never before experienced. That is why President Obama has signed the Home Affordable Mortgage Plan to help homeowners save their homes. Here are some loan modification tips for those who think they might qualify for assistance.

You will need to complete the process for this assistance through your bank or lender.

If you lender is on the approved lender list, they will receive a financial reward of $1000 for each homeowner that they help with a reworked mortgage. This gives them a little more enthusiasm for helping you modify your mortgage.

They take an existing mortgage and rework it to get a lower house payment which the homeowner can afford, and this involves using several different methods. They can lower the interest rate on the loan, lengthen the term, or even reduce the principal so that they can get the payment to the desired amount.

A qualified homeowner will get a monthly mortgage payment that is 31.

These facts are an example or why you need to research the program guidelines before you apply. How you figure your payment could affect whether you qualify to apply or not. You only are allowed one application, so you need to do it correctly.

You will need to document all the budget information you include in your application. You need to show a past financial history and a future financial outlook to present your situation fully to your lender. They are interested in what caused your inability to remain current on your mortgage, and it will be verified. Don't make any statements that you can't back up. Being found in an inconsistent statement will only cause your application to be immediately rejected, whether you qualify or not.

Obama's Home Affordable Mortgage is welcome assistance for those who feel totally desperate and don't know where to turn. If you think you may qualify, you could employ these loan modification tips to increase your chances of success in your application process. Just imagine the relief to no longer face the stress of your situation and be able to stay in your home.