Obama's MHA Loan Modification and Refinance Plan - You'll Never Qualify For it Without This

While there are several guidelines to meet in order to qualify for a loan modification under Barak Obama's new mortgage plan, there's one thing ALL lenders are looking for -- and if you leave this out you'll NEVER qualify for a loan.  It's that important.

The #1 Thing ... Without It You're Toast

When applying for a loan modification under President Obama's MHA plan, most people focus on making sure they have a good explanation for why they've fallen behind on their payments.  And that's not bad, because they should.  The best way to convey what caused you to get behind  is to create a well written hardship letter.

But that's not the most important thing - not the #1 thing your lender or loan servicer needs to see.

Without a doubt the most important thing you're going to need to do is to assure your lender - or better yet prove to them - that if they modify your loan you'll be able to meet the terms of your new agreement.  They need to be confident the problems which caused you to get behind were temporary problems which have been solved.  They need to believe that going forward is a low risk for them.  Which means you've got work to do.

How To Make Sure You're A Good Candidate For A New Loan Approval

There are a number of ways to prove to your lender that you'll be able to meet the terms of a modified loan.

First, with a well written hardship letter. The hardship letter needs to convey that:

You recognize you haven't fulfilled the terms of your original contract and you are committed to paying off your loan.
The reason(s) you fell behind.
Why the situation was temporary, i.e., why if given the opportunity to -- you'll now can be able to meet the terms of a new agreement.
Your proposal which states what you can reasonably take on backed up with the reasons why.
Prove it (facts and figures).

Second, proving it with facts and figures.  Here is what you'll need:

All sources of monthly income, with total amounts.
All sources of monthly expenses and debt.
The ability to achieve a debt to income ratio of 31% with the help of the lender and the government under Obama's new MHA plan.

In summary, it's up to you to decide if keeping your home is worth the effort.  If you believe it is, the government and your lender will work with you to help make it happen.

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