Obama Loan Modification Program – Homeowners can get rewards to Save Their Home

The Obama loan modification program offers hope and help to almost 5 million homeowners stuck with high monthly payments. But did you know it also pays you to participate? That's right, homeowners who meet certain requirements will be paid up to $5000 as an incentive to keep the modified mortgage current. Here is how it works.

Part of the $75 billion dollars allocated for the Obama loan modification plan has been set aside in a Pay for Success fund that will reward homeowners who have qualified for the new lower monthly mortgage payment, and kept those payments current. Here is what you must do to qualify for the payout:

Check If You Qualify For Obama's Loan Modification Program

Meet certain qualifications to qualify for the loan workout program Keep the new modified payments current for at least 12 months A bonus of $1000 will be paid for each year without delinquencies,up to 5 years total.

The total possible pay out of $5000 will be credited directly towards your principal balance. This incentive is designed to encourage borrowers to stay in their homes making the payments, and also to help recapture some lost equity. Homeowners who can qualify for the Obama loan modification plan will have their monthly mortgage payments reduced to a target payment that equals 31% of their gross monthly income. This new lower payment is designed to be affordable and sustainable for the long term and should help millions of qualified borrowers avoid foreclosure.

How can you make sure you will qualify for the Obama loan modification program? Well, the first step is to know how to meet the debt ratio requirement. Do you know how to figure your expenses and calculate your debt ratio? It's not hard to learn, but taking the time to do this could mean the difference between approval and denial. You don't have to pay thousands of dollars to anyone to apply for this loan workout-the plan is free-and you can do it yourself with just a little bit of preparation.

It's not rocket science, just simple math-so make sure you do everything you can to increase your chances of saving your families home. There is a standard 4 step formula that is used to determine who qualifies for the federal loan modification plan. You can learn this very same formula and use it to prepare your own accurate and acceptable proposal for your lender. Why take chances when the answers are available for you to use?