You as a homeowner are probably wondering if you should start the mortgage modification process now, or wait until tomorrow when President Obama releases the modification plan.

Put into perspective that there are millions of people (or more) out there that are wondering the same thing. You not acting fast could result in a wait that is getting longer by the day. It’s almost a given that once those details are released, mortgage lenders will be swamped with calls.

In this time of crisis, refinancing is no longer an option for many people and mortgage modifications are the way to go. I realize the loan modification process can be confusing and hard to understand since there are many steps to getting your loan approved. But don’t let this discourage you. if you think you may need a modification, chances are you do. Take action today; do your research, get on the internet, call around and ask questions and get your application submitted as soon as possible. Once Obama’s plan is released tomorrow, lines will grow increasingly longer causing the homeowner to become even more anxious.

Take this like going to an amusement park. You want to get there early enough so you don’t have to wait in line for all of your favorite rides. It’s that simple - get in line as early as you can to beat the crowd. Some lenders are estimating this month that modification could take up to 4 months to be completed. Others are guessing 6-8 weeks. If you are worried (that) you wont (won’t) qualify then there is only one way to find out; call, call, call.. Don’t be mistaken, waiting could mean months of time you may not have.

Just keep in mind, lenders are trying a great deal to get their client’s interest rates lowered and have their payments reduced. Not all that inquire will qualify, which could make you move up in the line. Tune in tomorrow for the details on Obama’s highly anticipated plan. Many questions will be answered but take note this is not a miracle maker. It is simply a step in fixing the housing crisis in this country. Tomorrow could mean however, a defining moment in the housing market crisis.

The anticipated foreclosure prevention program that was released by President Obama targets 9 million borrowers for help. Are you included in on this program? Here’s how you will know if you qualify.

The package is a $75 billion effort known as the HASP, which provides two basic solutions. In one, the government offers help to homeowners to refinance their houses and to take advantage of the low interest rates. That is if, you are eligible. The second, is the concept of mortgage modifications that gives incentives to lenders and other vast companies to restructure people mortgages to a more affordable plan. The official report won’t be released until March 4th, but here‘s some brief information to see if you can be a part of this.

If you are looking to refinance then this portion of the package is for those who kept current on their mortgages. If you’re a homeowner that has been swimming in your mortgage, owing more than what your house values then you will most likely not qualify for a refinance. That is, unless, there is at least 20% equity on your house or you have an FHA loan. Even homeowners that exceed at least 5% of their home value could qualify. There will also be no prepayment penalties. The Obama administration anticipates this will help about 5 million homeowners get lower interest rate mortgages.

The second option is mortgage modifications. Homeowners that are about to default on their mortgage may qualify for a mortgage modification. Also anyone with debt, such as car loans and credit cards that exceed 55% of their income, may still qualify. However, they will have to accept the fact that they need to seek debt counseling through a certified program. If qualified, your lender will reduce your monthly mortgage payment to at least 31 (percent?) of your gross income. The perk for this program is that borrowers could get up to $1,000 a year for five years to help make their payments on time. President Obama has estimated that about 3 to 4 million people could benefit from the new mortgage modification program.

Who’s not eligible? People that bought a home for strictly investment purposes. Also if you were irresponsible on your borrowing, like many companies have been with their bailout money, you will not qualify. Stay tuned March 4th for more details on how this plan can help you.

Change is not a word most distressed homeowners want to think about. For anyone with an ARM that has taken monthly house payments higher than they can afford, change is bad. Change in employment status, or household earnings that have fallen overall, is not good either.

But if a homeowner can recast their mortgage – bringing the monthly payment to an affordable level – change is a very, very good thing. But is it possible, given the amount of press on the millions of Americans in danger of foreclosure due to adverse circumstantial changes?

Absolutely, change to more affordable mortgage terms is possible. But most people don’t have the savvy to negotiate with their banks. Instead, the smartest thing they can do is to work with a loan modification firm, a team of lawyers, accountants and other home lending experts who works on behalf of the homeowner. The mortgage modification specialists understand bank language, document needs and just how to show a bank that foreclosure is not in the bank’s best interests, either.

Change comes at a price, but it’s exceptionally reasonable and easy to justify. Loan modification companies charge about a month’s mortgage payment. But they can do it with a high degree of certainty – more than 93 percent of loan mod attempts succeed. And for the few that fail, the modification firm should refund the fee (ask about a guaranty upfront).

It may all seem like bad news on the economy and housing crisis. But there are bright spots here and there that can make a difference.

First, anyone in the foreclosure process does not need to consider it a done deal. In fact, thousands of people facing hardship with unaffordable mortgages are negotiating better terms on their mortgages, enough to retain ownership at lower monthly payments.

Second, banks are willing to discuss any terms other than foreclosure – short sales, or deed in lieu of foreclosure – because foreclosure itself is an expensive process for them. And in the end, no bank wants to own homes that are hard to sell in this market.

The problem for many borrowers, however, is that they don’t know the ins and outs of loan modifications. They are intimidated by bank terminology, and are dealing with very rational processes when in fact their emotions run high and cloud the conversation.

Loan modification specialists – expert in financial and legal issues of real estate and lending – now are arising to help borrowers in distress. This is an underreported bright spot in the troubled economy, yet available for anyone wishing to take advantage of it.

Something had to give. People have been hurting for a long time but never this bad.

My sister works in the financial industry in institutional markets. I don’t even know what that means exactly but what I do know is that she used to make a lot of money. Because of this, she has this home that is worth a couple million (at least it looks that way). She also has a home in Vegas and also is helping out my mom with her home in Chicago. That’s a lot of burden for one person to take on but at one time it was a good bet she would do okay with the mortgages. Even though she is brilliant as a businesswoman, no one could have predicted that things would get this bad.

Now times have changed. I would venture to say because she knows a lot about banking she probably knows about loan modifications but looking at her situation it sounds like a perfect opportunity for her to recast her loans.

The biggest compliment I could even give to my employer would be referring family right? We’ll that exactly what I am going to do. So all I am going to say is if I would refer my sister to the company I work for, I would hope that you, the reader, would do the same.