sapan | Uncategorized | March 1st, 2011 | No Comments »
President Obama’s “Making Home Affordable Program” seems to have created a magic effect on the sagging housing market. Millions of homeowners across America have been able to avoid home foreclosure processes by getting their existing home mortgages modified under the federal scheme.
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To Qualify For Home Affordable Modification Program
Obama’s home affordable modification program or HAMP offers lots of hopes and promises to homeowners who have been struggling to stay current on their mortgage debts. Reports indicate that the HAMP has enabled thousands of borrowers in stalling home mortgage foreclosure processes and at the same time even lenders have been helped to mitigate their mortgage related losses. Remember, the HAMP Loan Modification provisions have been designed to assist almost 4 million homemakers that have become victims of economic meltdown which has lead to the present housing crisis. This means tens of thousands of homeowners could be still eligible for a home loan workout under the government mortgage bailout plan.
This makes it necessary for borrowers to have a thorough understanding of the federal loan modification requirements and the manner in which possible home foreclosures could be avoided. Here is some vital information regarding the same which you may find useful in your effort to save your home as well as money in the long run.
- The HAMP eligibility criteria:
- Existing home mortgages should have originated before 1st January, 2009.
- Only primary residences can qualify for the HAMP mortgage loan workout.
- Borrower needs to demonstrate a financial hardship situation along with valid reasons.
- Value of unpaid mortgage loan balances cannot exceed $ 729,750 for a single unit family home.
- Present monthly mortgage payments have to be more than 31% of the borrower’s gross monthly income.
- Other HAMP provisions for avoiding foreclosures:
- Debtors who have filed for bankruptcy could be eligible.
- Foreclosure proceedings could be halted for 90 days if it can be proven that the borrower is capable of paying the modified monthly installments.
- If there is a default in the HAMP home loan modification plan, lenders could proceed with HAFA alternatives such as short-sales or deed-in-lieu instead of foreclosing upon home.
- Lenders are not required to grant principal reductions under the HAMP rules and regulations.
- Second mortgages or lines of credit could get eliminated through the HAMP.
If you can satisfy the home affordable modification program guidelines, there are chances that you might be able to get much reduced mortgage rates and thus, lower your monthly installments drastically. Additionally, if you maintain regularity in paying the modified monthly payments, you could be entitled to receive incentives worth up to $ 1,000 by way of principal reductions for a period of 5 years. But you would be needed to seek the services of a HUD certified counselor.
Check If You Qualify For HAMP Loan Modification Plan
To get more information on stopping foreclosures with the home affordable modification program, it is hereby suggested to utilize the professional services offered by reputed online service providers like Obamaloanmodification.