Obama's Loan Modification Plan is intended to aid homeowners refinance or modify their loans for more affordable mortgage payments.

Sadly a bulk of the funds  go to the banks and they're not bound to heed. Only individuals who are not behind on their mortgage and whose loans are through Fannie Mae and Freddie Mac are eligible for Obama's Loan Modification Plan. The plan is leaving millions of U.S. homeowners in jeopardy of facing foreclosure unprotected & out of the plan.

Here are a few general customary criteria for basic eligibility for this program:

1. The home must be your primary residence

2. Not applicable to 2nd mortgages

3. Provide proof of your income

4. Your current home loan must match 31% or more of your gross monthly income

As many as 6 million families are predicted to face foreclosure in the next few years.

The bleak and fast deterioration in the economy and in the housing market has caused overwhelming repercussions for homeowners throughout the the US . Millions of steadfast families who pay their monthly mortgage payments punctually have had the value of their property fall and therefore are now not in a position to refinance to lower mortgage rates. Meanwhile, millions of working people in the US are having difficulty staying current on their mortgage payments after having their hours cut or being terminated. In the last 14 months alone well over five million jobs have been cut and millions of hard working families are now concentrating more than 40 or 50 percent of their income towards their monthly mortgage payment.

How To Modify A Loan
When a loan modification application is turned in by a homeowner, it is meticulously scrutinized to decide the profitability to the investor or the possibility of loss. The "Net Present Value Test" is used to conclude what will offer more cash flow to the investor-Foreclosure or Modification. Their decision is not based on what's best for the homeowner. It is purely based on what is more financially rewarding to the investor. If modification is not in the favor of the investor, they will not approve your application.

For this reason legal assistance is available to homeowners.

For more information regarding Home Loan Modification www.JaninAndAssociates.com