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Federal Loan Modification Program
President Obama’s loan modification program has helped many homeowners who are facing foreclosure. The program has been funded with $75 billion dollars to assist homeowners in keeping their homes.
The plan is intended to help 4 million homeowners, and the $75 billion will go directly to homeowners to help them with avoiding foreclosure through loan modifications. Loan modifications or mortgage modifications may allow homeowners to drastically reduce their interest rate, reduce their principal, and even halt foreclosure proceedings.
Obama Federal Loan Modification
Obama’s Federal Loan Modification Plan is being utilized to lower mortgage rate of interest as much as 3-4% and even in few cases as low as 2%*.
The rule of thumb here is that homeowners whose mortgage payments exceed 31% of their monthly income or are either:
1) Unemployed2) Have ARM’ s which have had dramatic rate increases
3) Have seen significant loss of home value.
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