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.

Millions.

This is the number of people facing foreclosure and financial ruin right now. What a horrible problem to face going into the job of President which also has to deal with other issues. I am personally glad the guy is young because I have seen the effect on the people who have had this job before. Seems to age them badly.

So let’s talk bluntly and bring out into the open the biggest issue with foreclosures. Why should the bank allow loan modifications?. They will just lose money and if more and more people do it, it will end up with the banks going to the government and asking for money to cover the losses. They already got some, and you can bet they will get more. Who pays for that? Everyone.

But then you cant expect millions of people to be on the streets. You can’t expect foreclosures on every street right? You have to do something. Also, why should the people who are paying on their mortgage also pay in taxes for the people who did not.

People are already having enough problems paying their mortgage and now they are saddled with even greater issues of paying on someone else’s. How fair is that?

If we are in the position where we need to modify our loan, then have little choice. It’s not an option really. Being on the streets or moving into someone else’s place just so we can pay rent there makes no sense. We can’t just allow America to self destruct right?

This is not one decision, it is several decisions and they will require the wisest mind and the strongest of wills. I think Obama has that going for him. But I am not too sure it’s all about him. We need as Americans to change. Not just in the way we do things like purchase homes, but also change in our selfish ways.

You see, in my head, if we can just get past the “who is to blame” and the “too bad for the people in trouble” and start changing our mind to realize that in the end, we all have to have self respect and respect of others no matter what their situation. If we have to give, do it. One day, maybe soon, you might be on the receiving end of this mortgage situation and will just be hoping that others in a little better place financially does not have the same attitude as you.

Seeking help is NOT a sign of weakness. It is a sign of wisdom.