Save Your Home By Qualifying For The Hamp Loan Modification Program

One can apply for the HAMP loan modification program even if one has missed out on

some monthly payments with the help of the home affordable modification plan. Any homeowner would not want to lose his home to foreclosure especially after spending half of their lives trying to save money for purchasing the home and after having purchased it they wouldn't want to lose it for any reason whatsoever. To assist homeowners in this pursuit the Obama administration introduced the HAMP loan modification program.

The HAMP loan modification program was a part of the making home affordable program and its main aim was to reduce the mortgage loan repayment amount to make it affordable for the homeowner to pay the monthly installments without compromising on ones basic necessities. Not everyone could qualify for the home affordable modification program (HAMP) as there were certain parameters which needed to be met if one wished to qualify for the home loan modification plan. The standards set for qualifying for the home loan modification program were:

The original mortgage loan should have been availed prior to 1st January, 2009 and should have been on ones primary residence.

The mortgage loan amount should exceed $729,750 for a single unit.

The monthly total mortgage loan repayment amount should exceed 31% of the persons gross monthly income.

If the homeowner met all these qualification parameters then the loan modification lenders would accept their mortgage modification program application and the moment their application is approved the foreclosure proceedings will stop immediately till the time the debt is discharged completely. As per the home loan modification plan the home loan lenders would have to reduce the total monthly mortgage loan amount to 31% of the borrower's gross monthly income so that the income to debt ratio is not upside down and the homeowner is able to afford the payment from his monthly income without sacrificing other bills and basic necessities. The HAMP loan modification program also enabled conversion of the high interest mortgage loans to low interest affordable mortgage loans with extended period of repayment to up to 40 years. Since the home loan modification allowed reduction of interest rates on the loan and also extension of the loan repayment period this had a direct effect on the overall mortgage loan balance to be repaid.

Loan modification lenders were also entitled to annual incentives on every loan modification approval and this step was introduced to trigger the response of the lenders as the mortgage modification program was a voluntary program introduced by the Government which the loan modification lenders were not bound to implement. However, the incentive structure attracted the major players and they volunteered to offer the HAMP loan modification plan to its existing and new customers who are in need of the program. Hence, if a homeowner is facing difficulty in making their mortgage loan payments then the best option would be to contact the loan modification lenders for home loan modification help.

by: Sally Mansell

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