Loans » HAMP

Eligibility For the Home Affordable Modification Program

davidguide — Sat, 31 Oct 2009 06:45:24 +0000

If you currently have a home loan which you can no longer pay, there is good news waiting for you. The current administration have recently launched the HAMP or the Home Affordable Modification Program. This is a bailout or modification plan which will help borrowers save their home from getting foreclosed. In order to get accepted for this program, you need to be eligible.

Eligibility for such program requires the loan to have been financed on or before January 1, 2009. Aside from this, the mortgaged home should be the principle address of the homeowner. This means that real estate inventors who only rent the property are not qualified.

Your debt to income ratio or DTI also plays a significant part in determining your eligibility. The factor to be qualified is 38%. This can be computed by taking all of your monthly loan debts which include the monthly property tax, mortgage payment, homeowner’s fees, and property tax and insurance fees. That number should then be divided with your monthly household gross income. Once your DTI equals 38% or even below that ratio, then you can qualify for the HAMP. To add, if your DTI is 31%, you can have an extension of up to 40 years in your loan term as well as a lowered interest rate. In some very unusual situations however, the principal balance can also be reduced.

Additionally, the first mortgage is only qualified for such program. If there are any other liens, they will not be eligible. You also must have some proof that you are currently undergoing some financial crisis. This can be supplied by your financial documents such as your statement balance, pay slip, or transaction statement. Another requirement is to submit a hardship letter which determines your current monetary status and the reasons behind it.

Lastly, the maximum principle balance should only be $729,750 so that the first lien will be eligible. Once the above stated criteria fit your current status, you should apply for the HAMP so that your home can be saved.

Even if the criteria for the Home Affordable Modification Program are easy to understand and meet, there are still a lot of banks which refuse the approval of the loan modification. Other banks sign up for another program known as the Obama bailout program while others will stall, lose your documents and even provide terrible customer service so that you will give up. When this happens, you need to be frank and maintain a log of every communication which takes place. This log can be directed to the concern of the manager and even send complaints that have been signed to the higher authorities.

For detailed facts and essential tips about how you can be approved for the Home Affordable Modification Program, visit this simple, easy to understand loan modification guide and resource:http://HomeLoanModifications101.com

Article Source:http://www.articlesbase.com/mortgage-articles/eligibility-for-the-home-affordable-modification-program-1401382.html

Foreclosure, Home Loan Modification, and What The Homeowner Needs To Know

davidguide — Sun, 25 Oct 2009 13:47:24 +0000

The current real estate and foreclosure crisis began two or three years ago. Since then homeowners have been working towards getting home loan modifications from their banks. As a result, the banks are becoming more and more buried under requests; many of them unprepared for the number of requests received. All of this equals up to homeowners who qualify for home loan modifications being left in limbo while the banks struggle to keep up.

The government’s solution to the problem: President Obama’s Home Affordable Plan. HAMP (Home Affordable Modification Program) is a $75 billion initiative designed to help people afford their mortgages and stay in their homes. One program it funds is a home loan modification program. Lenders are encouraged to assist borrowers who are having trouble keeping up with their monthly mortgage payments. The banks are rewarded with $1000 for each home loan modification that they complete, so they are more than willing to help. Also, they are more than likely to make ore from the renegotiated loan than they are from the foreclosure.

A Home loan modification is a renegotiation of your initial mortgage. This modification can reduce your interest rate; change your rate from variable to fixed, or even both. It can extend the duration of the loan (usually up to between 30 and 40 years). It can even lower the principal for borrowers whose homes have lost their value. Any one of these changes can mean the difference between the homeowner keeping their house or losing their house.

If the lender doesn’t renegotiate the borrower still has 90 days from the first notice of delinquent payment until the bank can step in and seize the house. This will allow the borrower a little time to think of an alternative such as negotiating a short sale with the bank, or consulting a professional home loan modification specialist.

A short sale is when the homeowner sells the house for less than its value, and the bank accepts the money and erases the rest of the debt. Banks will sometimes do this because it is preferable to them owning a house it may take months to sell under in the current housing market.

A home loan modification specialist is just what the name suggests. It is a person who specializes in loan modifications, and the laws and regulations surrounding them who can help the homeowner navigate their way though a loan modification process. These specialists work with banks on a daily basis so they know how to talk to them. Not just all the legal and technical language, but the proper channels of negotiation and communication to use when dealing with a bank. They will also have a better understanding of whether the bank is offering is the best possible option and if it is fair. Also, because of their existing relationship with lenders, they’ve made the business contacts needed to get you the best possible deal.

The most important thing to remember is to take action the moment you miss your first payment, maybe even before you miss it if you know you are going to. The sooner you start working either with a professional home loan modification specialist or the bank itself, the sooner you can get the problem taken care of.

To learn more about home loan modification visit Legal Loan Bailout.

Dustin Rohde is an article contributor to Legal Loan Bailout. Legal Loan Bailout connects you with lenders that can help you avoid foreclosure using home loan modification. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will negotiate a loan modification that will help you keep your home. Visit

Article Source:http://www.articlesbase.com/mortgage-articles/foreclosure-home-loan-modification-and-what-the-homeowner-needs-to-know-1376796.html

Home Loan Modification In 2009

davidguide — Tue, 06 Oct 2009 02:08:38 +0000

Within the last few years, millions of Americans have been forced to learn about home loan modification, whether they wanted to or not. The foreclosure crisis coupled with an unstable economy has made being an expert on the topic crucial for many to keep their homes. There has been a crash in the real estate market, and it has been felt by everyone. Now with nationwide unemployment being 9.8% as of the beginning of October, things are getting no better. Real Estate values have dropped by one third over the last three years, making a third of home owners upside down (owing more than the house is worth) in their mortgage.

Home owners who would normally be asking themselves what color to paint the house are now asking themselves how are they going to keep the house. The answer varies from situation to situation, but one thing is certain in all cases, action is needed to prevent foreclosure. One of the solutions is home loan modification.

A home loan modification is when the bank agrees to change the conditions of the mortgage, allowing the home owner to stay in their home. There are several forms these changes can take. One is a lowering of the interest rate, or changing the rate from a varied to a fixes. Another is a change to the length of the mortgage’s duration; and even a lowering of the initial principle of the loan.

There are two approaches you can take. You can negotiate your new loan with the bank or you can use a professional loan modification specialist. Either way you are going to have to have certain information ready for the bank to review.

First you’ll need to know your income/debt ratio. This is exactly what it sounds like. The bank will need to know how much you make and what ALL of your expenses are. Not just mortgage payments, but car payments and insurance, credit card bills, cable bills, food costs.

To qualify for President Obama’s Home Affordable Plan: HAMP (Home Affordable Modification Program– a $75 billion initiative intended to help people afford their mortgages and stay in their homes) you must have a mortgage payment that is 31% of the gross monthly income or more. When figuring the mortgage payment, the property insurance, taxes on the property and any homeowner association dues you pay can be included in this figure. Even if you don’t qualify for HAMP you still may qualify for a home loan modification.

You’re also going to need to explain to the bank exactly what has changed that you can no longer afford your mortgage. Job loss, health issues, and family emergency are a few examples of more common reasons. Along with that you’re going to need to provide the bank with your plan to afford your new mortgage payments.

The process to get a loan modification is not a simple one and requires careful preparation. If you’re going to do it yourself, be sure to be prepared. If you’ve any doubts, then it is a good idea to consult a professional who specializes in home loan modification.

To learn more about home loan modification visit Legal Loan Bailout.

Article Source:http://www.articlesbase.com/mortgage-articles/home-loan-modification-in-2009-1304392.html