Wells Fargo Loan Modification & the Obama Federal Program

p>A Wells Fargo loan modification is easier now forThis federally subsidized program has been expanded
distressed borrowers with the Obama federal plan.to include second loans as well. Homeowners who
This government loan workout offers the opportunityhave lost a significant amount of equity due to the
for millions of homeowners to reduce their interest ratehousing downturn can apply for a reduction in interest
and achieve a low affordable monthly mortgagerate to as low as 1%. Another option of this program
payment. Do you know how to apply for a Wellsprovides an incentive for the bank to retire the second
Fargo loan workout using this plan?lien altogether by reimbursing the bank a percentage
Even if you have already applied for a Wells Fargoof the forgiven debt. Ifyou have a second loan, make
loan modification and been turned down, or are stillsure you inquire about this part of the plan.
awaiting your answer, you can ask to be consideredThe Treasury Department has warned homeowners
for the Obama federal government plan. The approvalagainst paying anyone to apply for this plan, stating
guidelines are strict, but if you know a little bit aboutthat free counseling is available through the HUD
how to complete your paperwork properly, you couldwebsite. The counseling centers explain what
have a good chance of getting:programs are available, but they do not help you
complete your application. So this does mean
1. Your interest rate reduced to as low as 2%however, that you can just throw your paperwork
2. The loan term extended to 40 yearstogether and hope for approval. Successful borrowers
3. A portion of your principal balance deferredwill have taken a few hours to learn what they need
Some or all of the above options are available toto know to prepare their application so that it will fly
qualified borrowers to arrive at a new, modifiedthrough the approval process.
payment that equals 31% of your gross monthlyIf you are serious about getting a Wells Fargo loan
income. A Wells Fargo loan modification using themodification, make sure you are prepared and have
Obama government plan offers the same options tosome upfront information about how to get approved.
all borrowers and there is no negotiating needed-eitherIt's not difficult to learn enough about the process to
you qualify or you don't. Once you learn a few simplegreatly increase your chances of success. Help is
tips to make sure you complete your loan modificationavailable if you know how to get it-make sure you
application forms properly, you can work directly withhave done everything you can to save your families
the bank to get the new loan you need.home.