In this article I would like to discuss Obama’s Mortgage Loan Modification Program that is the part of the Home Stimulus Bill. The key point about this program is that it assists qualified homeowners to avoid foreclosure and stay in their homes. There is no need to mention that the economic troubles in the country and in the whole world have made lots of individuals comprehend they really need to have their mortgage adjusted (adjustable rate mortgage)to keep from losing their home to foreclosure.

Let’s start with that an individual begin seeking a reworked mortgage due to two most important reasons. The first motivation is that an individual is facing foreclosure. So, you can easily realize why it is critical – because with loan modification you get a lower interest rate, a longer term, and possibly a reduced loan principal. Another alternative to receive the same above benefits is mortgage refinance.

The next vital thing for you to remember is that reworking a mortgage can be rather a advantageous thing for individuals who are under financial stress since their budget is tight. The truth is that this person may not yet be in default, but the house payment is a major source of concern each month. As you can understand, in this way this person is trying to prevent foreclosure beforehand.

And now let’s focus on the key criteria for eligibility to Obama’s mortgage loan modification program:

First you should take into consideration that your home must be your main residence as mortgage loan modification is only available on the property you actually live in.

The next point for you to pay your attention to is that your outstanding mortgage balance cannot be more than $729,750 and in other words it just means that if your loan is equal to or less than this figure, you have the chance to be approved for mortgage loan modification.

The third vital aspect you need to bear in mind is that it is additionally essential for you to prove that you are having trouble meeting your current monthly mortgage payments. For this point a financial hardship letter is required. There you will explain your circumstances for example: the mortgage payment has increases considerably; the income became smaller since you took the loan out; the expenses have increases lately, due to some kind of unexpected costs.

It is also useful for you to remember that you must have taken out your present mortgage before January 1st 2009 to qualify for mortgage loan modification and it should be pointed out that if your case is that your loan was approved after this date, you are no longer eligible.

The last but not least thing for you to consider is that you should ask yourself whether all the payments are connected with your mortgage greater than 31% of your monthly earnings and if this is your case then you are eligible.

If you don’t make it for Obama’s Mortgage Loan Modification Program you can look into a unsecured debt consolidation loan.