Obama's Federal Loan Modification or Home Affordable Refinance program will help the homeowner to pay for their mortgage in extended term that is affordable for the property holder and lower interest rates.
The Federal loan modification is under Fannie Mae or Freddie Mac, this is one of the requirements in order for you to get eligible. If you do not know if the mortgage company is owned or guaranteed by Fannie Mae or Freddie Mac, you may contact them to check before you apply for the home affordable refinance program.
You should have no late payments or no missed payments within the last 12 months when you apply for the refinancing to be eligible. The next thing you should check if the amount that you owe for the first home loan is not greater than 125% of the present value of the house. As long as you can give an assurance or evidence that you can pay for the new mortgage and your lender will give you the statement that proves that your mortgage fees is lower than before it includes extension of the loan and reduced interest rates and principal value of the house, you are eligible to apply for the refinancing program.
If you know that you are eligible for the program, you can now prepare the documents to submit for the refinancing:
1. Present income tax return
2. Documents for the first home loan
3. Financial credit stability and minimum monthly fees that will include credit card bills
4. Information about your gross monthly earnings
5. Financial credit stability and monthly payments on all other loans and balance dues
The home affordable refinance program is not available for a long time; if you know that you are eligible you can apply right away until June 10, 2010.