subject: Researching Legitimate Loan Modification Companies [print this page] Its important to know the HAMP loan modification requirements before you make a decision concerning your home mortgage. This knowledge will help you decide if this program can help you with your mortgage payments or if you will need to seek other options.
Finding Modification Service Providers
Do you qualify for the HAMP Modification program? Since this is a federally-funded program there are specific qualifying factors for both homeowners and lenders. Some of the more common provisions of the program include the following:
Homeowner must be able provide documentation he can make the new modified mortgage payments
Homeowner must have purchased the home on or before January 1, 2009
Homeowner cannot have been charged with fraud or money laundering involved real estate or mortgages in the last ten years
Lender must be able to prove it will increase its cash flow after modification
Lender must be willing to work with homeowner to ensure he pays no more than thirty-one percent of his monthly income for payments
Program offers bonuses for both lenders and homeowners
For more information about the HAMP program visit our website at Credit-Yogi.com.
Finding the Right Modification Services
Once you discover whether mortgage loan modification services can help with your current mortgage situation, you need to decide whether you will seek a provider that participates in the HAMP program or a private lender. You must keep in mind the provisions of the HAMP program as listed above in order to determine if you qualify for that program. While the HAMP program is more beneficial for homeowners since the payments cannot exceed thirty-one percent of a homeowners income, private modification program usually allow up to thirty-six percent. While this may seem like a small amount, it can make a huge difference for those who are already struggling to make ends meet.
Conduct Research before Making a Decision
Before you make a decision about a home modification plan you need to be sure you research legitimate loan modification companies. This means you must have a general idea how loan modification works first; this is the only way you will know if the loan modification companies you are considering is legitimate or not. While this may not seem essential for federal programs, it is just as important for both federally-funded and private modification programs. You want to make sure the service provider you choose is legitimate and follows the guidelines of the individual program.
The HAMP modification program was born in the spring of 2009 in order to help homeowners who were struggling in the economic downturn and facing foreclosure. The HAMP loan modification requirements have been revised somewhat during that time, but the major provisions of the original program remain in force. Mortgage loan modification services exist in the private sector as well as in government-sponsored, though the government program usually offers more benefits. The important thing is to research legitimate loan modification companies before you make any kind of decision.
