President Obama’s HAMP Loan Modification Program In A Nutshell
Those of you trying to file a home affordable modification program application (HAMP) could find this reading material immensely useful. Typically, the HAMP is a plan devised and supported by the government of the United States to assist struggling homeowners, who have been faced with financial hardships, in modifying their existing upside down home mortgages and thus, lower their monthly mortgage payments to 31% of their gross monthly income.
Those of you trying to file a Obama Home Affordable Modification Program application (HAMP) could find this reading material immensely useful. Typically, the HAMP is a plan devised and supported by the government of the United States to assist struggling homeowners, who have been faced with financial hardships, in modifying their existing upside down home mortgages and thus, lower their monthly mortgage payments to 31% of their gross monthly income. While the federal mortgage modification, which is also known as the Obama stimulus plan provides numerous benefits, borrowers are required to satisfy certain conditions that are outlined by the program guidelines in order to qualify for a loan modification under the $75 billion stimulus package plan, the HAMP. Here is some crucial information pertaining to the same.
Basic eligibility requirements for the HAMP
- The home for which mortgage modification is to be obtained needs to be the primary residence of the applicant and not a rental, vacation or investment property.
- The value of the current home mortgage should not exceed $729, 750 for a single unit family home.
- The present mortgage should have been sanctioned either on or before 1st January, 2009.
- To be eligible for a federal loan modification program , the applicant needs to furnish a letter of financial hardships faced along with due reasons.
- The existing monthly mortgage payments, which include the principal, interest, taxes, insurance and HOA dues need to be more than 31% of your gross monthly income.
- The applicant should not have defaulted in paying the current mortgage installments for the past 12 months and even if there is a default, it should not have been more than 30 days
The aforesaid are the prime requirements for getting an approval for a mortgage modification program under the HAMP. There is little need to worry even if you fail to qualify for the HAMP plan since, you can always consider to apply for a mortgage refinance loan under the home affordable refinance program (HARP) which is another part of the government scheme. Therefore, if you have any pertinent questions regarding the HAMP qualification criteria, it is always desirable to avail proper legal advice prior to actually filing an application. This could invariably enable you to explore different alternatives available at your disposal and choose an option that best fits your financial budgets and situation.
To get more information on your home mortgage modification or refinancing options, it is recommended to utilize online professional loan modification help provided by reliable as well as reputed service providers like LoansStore
