Category Archives: Loan Modification
We might think for a while that the worst of financial crisis is over, but this is not the case. There are millions of people who are still struggling to meet their commitments and have still not recovered. Various markets are being encouraged with many incentives to assist these people in need.
The property market is no different and U.S. President Barack Obama has introduced a new program for assisting people in need. Its called Home Affordable Modification Program (HAMP). This program will help people in paying their mortgages quite easily. It will reduce the monthly payments which will be a huge relief for the homeowners.
With the help of this program, homeowners monthly payments will go down to 31% of their pre-tax income, even less in few cases. This modification plan will only be accepted if the modification equals net more value than foreclosure would.
In order to qualify for this program, you have to meet 4 main criteria:
- The residence on which you want your monthly payments to be modified should be a primary one.
- Your monthly mortgage payments should be more than 31% of your pre-tax monthly income.
- Your loan amount cannot exceed $729,750
- You have to prove that you cannot afford the current monthly repayment plan.
There is one more benefit of this program. Homeowners who get approved for this program are eligible for $5000 credit to reduce principal debt on their very first mortgage. But there is one criteria here that has to be met. You should not miss even a single payment and pay it in a timely manner for five years.
Once you meet the above requirements, there’s a government plan called monetary stability plan in which the mortgage providers have to necessarily participate if they receive funds from the government.
This move is not something that the government has taken out of kindness. In fact, this is a positive economic step taken with the motive of stimulating the economy and leading to expansion.
All those who are having a hard time in making their mortgage payments and are unable to figure out on how to solve the problem, look into this program introduced by the government. Otherwise, the lenders and the housing market will see huge losses again.
More information about Home Affordable Modification Program (HAMP) at: http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/hamp.aspx
The Federal Treasury Department is offering loan modification help to the many homeowners who have found themselves unemployed due to the current recession and are at risk of losing their homes to foreclosure. Now, even if you are unemployed you may be able to get your mortgage payment drastically reduced to help you avoid foreclosure while you look for a new job. Although there is $75 billion available from TARP funds, however only few gets qualified due to its tough qualifying guidelines.
President Obama has been very strict to people who have shown a very poor record of assisting their borrowers with a Loan modification Plan for Unemployed Homeowners under the federal plan, HAMP. The statics of borrowers are far less than the original target of 5 million homeowners. Realizing that the recession is causing more homes to go into foreclosure, the federal govt. will offer a loan workout to people who are under this loan and are unemployed to avoid their homes from foreclosure in the meantime the borrowers can look for new jobs and stay at their home.
The HAMP loan modification plan will be used as a guideline, however under this plan the unemployed homeowners will be offered an extremely low mortgage payment for a specified period of time so that they can get the time to find a job and get back on track. Since the ongoing foreclosure crisis is affecting every aspect of our global economy, the goal is to offer help to as many borrowers as possible and keep them in their homes until a long term solution can be found.
If you are unemployed or facing a loss of income, then you should learn how to apply and qualify for the federal HAMP loan modification program. If you are confused about the approval guidelines and need help to figure your debt ratio, target payment and other calculations, you can take advantage of an easy to use software program that is specifically designed to help homeowners qualify for HAMP. There are standard approval criteria that must be met, so you would be well advised to learn just how to complete your financial statement correctly so that you are not turned down.