Eligible For a Government Loan Modification - Who Qualifies For a Federal Loan Modification Program?

By Luke Cambell
US Stimulus Package introduced by President Obama has a mission to stop the foreclosures and bankruptcies prevailing in United States. This plan helps the home owners save their homes. They can apply for a loan modification. The Federal Government has set some eligibility conditions to apply for the people to prove themselves eligible for a government loan modification.
 

Here are the points that would determine whether you are eligible for a government loan modification:
• Its not that the owners who have missed any of their monthly loan payments can only be eligible for government loan modification. Others also can apply if they feel they need one.
 

• You should be a citizen of United States to be eligible for a Government Loan Modification
• One of the foremost conditions is that your mortgage value should be more than the current market value of the house over 105%.
 

• The other thing that you need to check is that your mortgage deed must be owned or insured by Fannie Mae and Freddie Mac. This is one of the the main points that makes the person eligible for a government loan modification.
 

• The reason given by you must be legal and valid in case you have missed the monthly mortgage payments.
 

Apart from this, there are certain things you need to take care in order to qualify for Federal Loan Modification Program
• You should send the hardship letter if in any case you have missed your monthly mortgage payments. Otherwise the bank will send you the 'Notice of Default' which further makes the matter a legal case. After that the things may not be in your favor that much.
 

• You should keep all your required documents complete in all respect that include your credit details, tax returns, expenses details, etc. These documents can make you qualify for federal loan modification program.
 

• Seek help from the HUD (US Federal Housing & Urban Development) Department's counselors and do not involve any third parties, any which ways. These counselors serve you free of cost in a sure & smart manner right from the beginning till the end.
 

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