Loan servicers are working hard to try and prepare for President Obama´s foreclosure prevention plan. As they do this, a new Web Site was recently developed to help homeowners determine their eligibility for the program. On Feb. 18th, Obama had introduced the $75 million plan, saying it was to begin two weeks later once all the financial institutions were fully prepped. With the plan, servicers would reduce a borrower´s monthly payments to no more then 31% of the borrower´s pre-tax income, or to allow them to refinance eligible mortgages to borrowers with little to no equity. In order to entice servicers and borrowers to use the plan, money incentives have been issued.

Of course, there are still many kinks to work out. Servicers are still trying to update their systems to to process the incoming applications, and need further clarification on key points of the plan. It also takes weeks for borrowers to learn of their qualification status, and many are starting to report that they are being outright denied by their servicers. Thus, the administration is asking for borrowers to be more patient and understand that starting this program involves a great deal of restructuring by the servicers. In order to combat these dilemmas, they are working as fast as possible, one of their ways to speed up the process being the website, www.makinghomeaffordable.gov. The website will provide borrowers with a set of questions to show if the modification or refinance programs would help them. It also helps them calculate if their current monthly payments are more then 31% of their pretax income, and if so it would show them what their new payment could be. They will also see a checklist of everything they would need when applying: credit card statements, pay stubs, tax returns, etc. An administrator said, "We want to encourage as many eligible borrowers as possible to take advantage of our program,...This site encourages borrowers to investigate if they are eligible for one or both programs."

Many financial institutions are also telling borrowers to go ahead and submit their paperwork, even though they themselves are not yet processing applications, so that once the processing begins borrowers can shortly learn of their eligibility. Rick Simon, a spokesman for the Bank of America, stated that "As soon as we're ready, we'll make calls to the people who've already contacted us,".  The spokesman for Wells Fargo,  said they are also trying to get an early start, "We're also asking our customers to gather the necessary documents so that when our systems are up and running, we can begin quickly to help those who will likely qualify,". Way ahead of the group is Citigroup, which has already started re modifying mortgage payments with the 31% income level, as part of their November bailout from the government. They are also starting early as according to their spokesman, Mark Rodgers, "We anticipate that the modifications we are making will qualify under the Obama plan once the details are finalized,".