What Is The Home Affordable Loan Modification Program?

Despite this economy, the American Dream of home ownership is alive and well. If you happen to be having difficulties to keep your residence..breathe deeply...loosen up...there are actually possibilities to you. Don't sense that you might be alone. It could happen and may happen to anyone. Financial challenges can happen from any number conditions. Unemployment, medical situations, or bad financial judgements, demise of a other half. Whatsoever the explanations which have brought you to this point...do not beat yourself up about it all. It happens and will continue to occur to homeowners such as you every day. One option you should think of is the Home Affordable Modification Program (HAMP).

What Is The Home Affordable Loan Modification Program? This program was created by the Obama Administration in 2009 to assist everyone who is unable to continue to make their month to month mortgage payments. It is a mortgage loan modification program to scale back your monthly bills and never having to re-finance your present loan.

Is This Modification Program Offered To All Homeowners? Indeed...if you meet ALL of the following qualifications:

1) You will need to be residing in the property under consideration any time you submit an application to the program and it have to be your main home.

2) Your mortgage has to have been acquired just before 2009

3) Your mortgage payment needs to exceed 31% of your gross monthly pre-tax income. This amount would include the principal, interest, home owners association dues, insurance and taxes.

4) Your mortgage balance is under $729,750 for a single family residence, $934,200 for a duplex, $1,129,250 for a triplex and $1,403,400 for a 4 unit home.

5) You show documented evidence of financial hardship.

After You Have Met The Particular Prerequisites What Happens Next? It's really important to ensure that you conform to all the specifications right before proceeding, so double check. Then you can definitely present your application. The process is quite basic at this point. Obtain your home affordable loan modification application from your loan company.

Next your loan provider will follow up with complete directions on how to submit your application. Be prepared to submit a monetary hardship letter, 2 current take-home pay statements and other documents may also be needed. Your lender with tell you further. The lender will tell you within 1 month regardless of whether you have qualified for the home affordable loan modification program.

When you are accepted you will keep to make your recent mortgage payment on a 3 month trial basis. If you do make your installments in the full amount and on time...then your mortgage loan modification might become long term. If in contrast you was not able to payout your loan over the trial period you won't meet the requirements and will need to search for an alternative solution.

So How Exactly Does The Home Affordable Loan Modification Program Benefit You? In case you are in danger of losing your home to home foreclosure it is really an option you need to seriously consider. Taking advantage of this government program would be a great option. The HAMP program can reduce your rate of interest as much as 2%. In some cases your mortgage can be lengthened as long as 40 years. This program may also postpone your interest charged on a certain amount of the principal on your mortgage loan.

It's actually a mutually beneficial scenario for you and your financial institution. You can cope with the debt better as you will be making cheaper monthly installments. Freeing up cash for other financial needs. As well as the restructuring of the mortgage debt will permit your financial institution to get back some of the mortgage loan amount also. From a loan company angle...it's a lot better than receiving nothing at all.

So now that you know more details on the home affordable loan modification program, you can sit down and gather up your financial documents and see if you qualify. Right before getting in touch with your loan provider you might like to consult with an attorney who focuses primarily on loan modifications. He or she can offer hints and tips and answer any questions you may have about this process. It may be stress filled questioning if you are going to lose your home. But the good news is...you have options. Take the next step. Use this info as a guide to get you aimed in the right direction.