People think lenders are difficult to deal with when it comes to Loan ...

The Obama Administration rolled out its much awaited foreclosure-prevention ...

A Loan Modification hardship letter is a letter which explains to a lender why ...

Applying for a Loan Modification is very simple and can be done FREE of Cost ...

Due to the overwhelming number of homeowners in situations that they ...

Under the new plan, servicers, the companies that collect mortgage checks, will be paid $1,000 every time they cut the interest rate on a loan to reduce the monthly payment to no more than 38% of a borrower's gross income. The government will split the cost of reducing the debt-to-income ratio further than that, down to 31%. Both servicers and borrowers will be paid up to $1,000 a year (for three and five years, respectively) for keeping the loan current.

Borrowers may no longer have to be behind on the mortgage to qualify for a loan modification if they fall within the guidelines. Although priority will be given to delinquent borrowers, the main requirement is debt-to-income ratio (DTI) of 31%. This means that your total monthly dues (including insurance, taxes, and association dues) must exceed 31% of your income, which qualifies you as being in hardship. The loan workout option applies to mortgages originated on or before January 1st.

Even though the program is voluntary, there are early signs that it might be the kick in the pants needed to get servicers to more aggressively rewrite loans. At a mortgage bankers' conference in Tampa, Fla., on Wednesday, servicers praised the incentive structure, and Jamie Dimon, CEO of JPMorgan Chase, went on CNBC to say he thought the plan would "lead to a lot more modifications." An earlier effort to spark loan rewrites proved to be a flop, but the Administration thinks this new program could reach 3 million to 4 million homeowners. The plan also includes an endorsement of the idea that Congress might change the bankruptcy code to let judges write down mortgage debt — a not-too-subtle reminder that if the mortgage industry doesn't play ball with voluntary modifications, a more imposing solution could be around the corner.

In crafting the plan, policymakers had to walk a fine line between helping borrowers who have been caught off guard by tricky mortgage products and falling house prices and those who simply made imprudent decisions and genuinely can't afford their homes. In order to avoid propping up the second group, Treasury won't subsidize loan modifications that reduce the interest rate below 2%. If you can't afford a 2% mortgage, in the eyes of the government, you can't afford your house. The plan also doesn't apply to investors or people with jumbo mortgages — those, historically, larger than $417,000. Loans for homes that would be more valuable to lenders if repossessed won't get modified.

Help is just few seconds away. Apply today for a mortgage loan modification and one of us will call you back shortly.

Opportunity never knocks twice, apply today before its too late.