Considering Loan Modification

I’ve spent countless of sleepless nights lying in bed, wondering how I’m going to be able to pay for my mortgage. I blame myself for being too presumptuous and not having saved enough money when it was still easier to breathe. Now, I’m just barely scraping by, with what, less than a thousand dollars now left to my name? And so, due to pressing needs, I am now looking into Obama’s loan modification plan and hopefully qualifying for it. They say that it lowers my rate to 31% of my total pre-tax monthly income!

To make it work, my lender would first have to reduce my interest rate by 2%. If this doesn’t get it down to 31% of my total pre-tax monthly income, they will extend my terms instead. If this still doesn’t work, they’ll have a go at my principal and reduce it, or defer it to a later date. All of these measures really help because it would significantly reduce my modified mortgage payments. Speaking of payments, there’s even a very, very enticing incentive to encourage promptness in paying dues! If my payments are given on time, I can get as much as $1,000 subtracted from my principal loan each year for five years!



Only primary residences occupied by respective owners with outstanding balances of up to $729,250 are eligible. These eligible borrowers will have to verify their occupancy status and provide evidence of their financial hardship.

loan modification California

In view of everything I’ve discovered, I now know that I have to accomplish two very important things. First is that I have to carefully and thoroughly review my financial status, and second is that I have to consult with my lender. I’m going to keep my fingers crossed and hope that my outstanding balance is staggering enough. It’s funny how I now wish that I’m in serious debt!