Tips For Qualifying Hamp Loan Modification

Home Affordable Refinance Program i.e

Home Affordable Refinance Program i.e. the HAMP program is a loan that aims to benefit the borrower with an overall reduction in his monthly payments of debts. There are two options one can avail under the HAMP program -- loan refinance and loan modification. This is a form of loan that does not require refinancing.

Obamas Home loan Refinance Program act is formally called the Making Home Affordable Plan, and it is projected to help about 9 million families to refinance or restructure their mortgage loans and survive through the economic crisis. Its important to be educated about who is eligible for refinancing and modification, because its a lot easier to meet the criteria than you might think. Following are some of the important criteria that you need to fulfill.

Keep A Clean History: Only borrowers who have remained up-to-date on their payments are eligible for refinance.

Ownership of Property: The property of which you are applying for loan modification must be your actual residence. You cannot modify your vacation or investment property under the Obama plan.

Price Range of Property: In order to qualify for the Home Affordable Refinance Program, Property value should be in the appropriate range. Keeping it simple -- it should not exceed the price range of $729,000

Type and Size of Property: The property must be 1-4 units home. Owners with Apartment buildings are not applicable.

Expenditures after Mortgage: In order to qualify for assistance the home owner must be paying about a third or more of their monthly gross income towards their mortgage.

Proof of Inability to Meet the Payment Requirements: To qualify for loan modification you must have laid yourself open to some type of adversity. You cannot just lower your mortgage payment. You must have faced some sort of privation which also must be the reason you are unable to pay your mortgage.

Once you are sure you meet the above stated requirements, you are eligible for the Federal loan modification Program. The application procedure would be either directly or through some legal intervention like loan modification attorneys, etc. One has to ensure the authenticity of each documental proof one produces. The procedure involves both the lender and the borrower and both of them must meet certain deadlines so as to accelerate the process.

HAMP program is indeed a boon in disguise since it offers remarkably lower rates of interest and thus a drastic reduction in the overall monthly payments. Besides, loan modifications could save you from foreclosures and enables you to save more amount of money. Loan modification programs are so designed that even bad credit customers, if avail them could get the best opportunity to improve upon their credit scores. In all, it helps gain financial stability faster and in a reliable manner.

Loan modification has been with the lending organization since long as provisional bail out programs for financially distressed homeowners, In February 2009, the Obama Government launched HAMP Loan Modification for all struggling homeowners who had been affected badly by the real estate crash.

A modification of loan is a good option to bring your mortgage present and avoid the foreclosure of house. By following the necessary step to complete it will help you to avoid many problems in the future. The fall in your monthly payments and over-all debit balance will help you recover your financial stability as earlier.

by: Loan Modification

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