subject: Researching The Government Home Affordable Modification Program [print this page] The economy is still suffering even though some economists want us to believe it is on the way up. Because of the economic turmoil, there is still the need for a government Home Affordable Modification Program to help homeowners remain in their homes.
Loan Modification for the Financial Crisis
What is the answer when you know you can no longer make the mortgage payments you contracted when you were making more money? At the same time you dont want to let your home go into foreclosure and have to struggle to find somewhere else for you and your family to live. It is just because of situations like these that the Home Affordable Modification Program became necessary. Certainly not everyone will qualify for modification, but if you meet certain criteria you will be able to remain in your home and pay lower payments than you were paying prior to modification. Some of the criteria you and the lender must meet include the following:
Borrower must be also to provide documentation he will be able to make the payments after modification
Borrower must have acquired the property prior to January 1, 2009
Borrower must be behind in mortgage payments or in danger of missing payments because of a financial hardship
Borrowers must not have been convicted of a felony in the past ten years that is related to a mortgage
Lender must prove it will increase profitability after modification
Lender must be willing to meet all the terms of the HAMP program including the reduction or elimination of interest in order to meet the borrowers needs
For more information about the qualifications for government and private modification programs, visit our website at Credit-Yogi .
Is Modification the Right Answer for You?
If youre thinking about a home loan modification program, you need to sit and think about whether it is the right decision for you. If youre facing foreclosure but are sure if you can make the payments even if you modify the loan, it is unlikely you will be approved for modification. You also want to remember modification does not exempt you from foreclosure at a later day if you fall behind in payments again. These are important things to consider before you make a final decision.
Researching Lenders
If you are seeking a government-sponsored modification program, you may be limited in the lenders you can select. However, you still want to research the best loan modification companies in order to choose the one that is best able to meet your needs over the long-term. This may mean in terms of location or just the way in which you can communicate.
The government home affordability modification program is designed to help those facing financial hardship to remain in their homes. The Home Affordable Modification Program does have advantages but both lenders and borrowers need to meet specific qualifications first. Those who do not qualify for the government program do have the option to seek a private home loan modification program, but the benefits may be fewer. Before you make a final decision, conduct some research in order to find the best loan modification companies.
