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.