If you are currently in an adjustable rate mortgage and find yourself having trouble coming up with the monthly payment, you are in the same place as millions of other Americans. Fortunately, there is help for everyone, including you, that is having difficulty. You can avoid foreclosure with Obama’s home affordable refinance program.

This plan is really designed to proactively help those homeowners who are at risk of default, but who have not yet become late on their mortgage payments. Those borrowers who have an adjustable rate mortgage may want to refinance into this fixed rate plan and avoid payment shock when their interest rate adjusts. The plan also allows for homeowners who owe up to 25% more than their home is worth to qualify, and this is designed to address the loss of equity that many borrowers have experienced. This is a full doc program, so borrowers must be able to prove their income and meet standard loan approval requirements.

Another option is the federal government’s loan mod program, called HAMP – Home Affordable Modification Plan. Under this plan, eligible homeowners will be offered new mortgage terms that provide a low, affordable monthly payment. The goal is to change the current loan terms to provide a long term solution for the borrower and encourage lenders to participate by paying them for each completed loan workout under the plan.

Applicants must gather all pertinent income records and financial statements that are requested by the representative. Details must also be given in order for the agency representative to formulate an effective and concise hardship letter. There is a specific format that the letter must be written in order to obtain the best possible outcome. Working with a financial expert lessens the emotional burden for homeowners who are living with the fear of losing their home. Finding the best help is as easy as checking out online sources and comparing several agencies‘ services and fees. Most foreclosure specialists offer a free consultation for prospective clients. This meeting will answer many questions that the homeowners may need to have answered before beginning the modification process. Do not forget to check online the different option you have.

The loan modification plan is a more common option for struggling borrowers, however it can be tricky to qualify for. Remember that you must prove on your application that you meet the standard guidelines or you will not be approved. It is critical to understand how to prepare your financial statement correctly so that when your lender reviews your figures, they will see in black and white that you are a good candidate. You may want to use the best selling loan mod software program that has helped thousands to prepare their application. Then you can confident that your income, debts and other important qualifying information is acceptable.

Learn more about Obama Mortgage Relief Plan Qualifications.