sapan | Uncategorized | October 13th, 2010 | No Comments »
The latest information on the government backed HAMP loan modification program could be enough to send shivers down the spine. While 25% of mortgage modification applicants have been eligible for a permanent loan mod, almost 30% applications have been denied for one or the other causes. That’s precisely the reason why you need to know the ins-and-outs of successful mortgage modification requests.
The latest information on the government backed HAMP loan modification program could be enough to send shivers down the spine. While 25% of mortgage modification applicants have been eligible for a permanent loan mod, almost 30% applications have been denied for one or the other causes. Among the primary causes, missing trial period payments and overstating monthly incomes continue to remain in the forefront. Remember that when a mortgage company modifies the terms of your existing home mortgages, the main purpose is to mitigate the potential loss which the lender is likely to incur on account of missed monthly mortgage payments. Thereby, if you miss a monthly installment or have stated unverifiable income in your loan modification request, there are chances that a home loan modification lender might deny your mortgage modification application. That’s precisely the reason why you need to know the ins-and-outs of successful mortgage modification requests. Here is some crucial information pertaining to the same which could guide you in your endeavor.
Understanding the HAMP mortgage modification:
- Functioning of the HAMP:
The HAMP is assisted by a $ 75 billion stimulus package and as per guidelines of the program; the federal government provides incentives to lenders for encouraging and financially assisting struggling homeowners who are faced with enormous financial hardships.
Typically, a HAMP loan modification is an agreement between a lender and the borrower aimed at lowering the monthly mortgage payments considerably and making them more affordable. Such a contract also helps the lender in reducing his financial loss which is being incurred because of default committed in paying the monthly mortgage installments by the distressed house maker.
- Requirements for the HAMP:
Even if lenders are entitled to receive incentives under the government stimulus plan, it is under a sort of moral obligation to disapprove a loan modification application which does not satisfy the home affordable modification program requirement rules and regulations. Since the program intends to help homeowners in honoring their mortgage payment commitments and thus, avoid home foreclosures, the documents that need to be furnished at the time of tendering a request has to be correct and accurate. If it is not so, then your application could be denied.
- The broader picture of HAMP modified loans:
When you are filling out a loan modification request under the HAMP mortgage modification program, it is very much imperative for you to contact the authorized person in the “Loss Mitigation Department” of your mortgage loan lender for reviewing your case. And once your application has passed the initial review, it goes to the “Underwriter” who authorizes acceptance or denial of your existing mortgage loan.
To get more useful and relevant information on the federally backed “Home Affordable Modification Program” (HAMP) or the “Home Affordable Refinance Program” (HARP), it is recommended to utilize the professional services of reputed online service providers like LoansStore.