The HAMP Federal Loan Modification Program: Are you a Candidate?
Millions of Americans have been living with the very real possibility of losing their homes. The HAMP Federal Loan Modification Program which begun in March of 2009 is one of the many programs to help alleviate this burden. The federal Home Affordable Modification Program, a.k.a. HAMP was designed to assist troubled home homeowners facing possible foreclosure the opportunity to keep their home. There are more than a few stipulations but if eligible, the HAMP Federal Loan Modification Program and give you the help you need to keep your home.
HAMP provides federal incentives to entice both banks and borrowers to participate in loan modifications and avoid home foreclosure. With millions of Americans facing financial difficulties it is important to understand the qualifying criteria. The HAMP Federal Loan Modification program is available to:
-Borrowers currently living in their property when applying and it is their primary residence.
-Their mortgage was entered into prior to January 1, 2009
-The mortgage is under $729,750 for a single family residence, under $934,200 for a duplex, $1,129,250 for a triplex and $1,403,400 a fourplex/4 unit home.
-Borrowers can be current or less than 60 days delinquent and are determined to be in imminent default, or 60 days or more delinquent.
-There must be evidence of financial hardship. This could mean loss of employments, death of a spouse, or loss of household income.
-If the borrower is in foreclosure, in pending litigation regarding the mortgage, or they are in active bankruptcy they are eligible for HAMP.
-Mortgages can not have entered into a Trial Period Plan under HAMP. However Mortgages can have been previously modified.
-Borrower's first mortgage must be guaranteed by either Freddy Mac or Fannie Mae.
-The borrower must show a hardship for monthly housing expense to income ratio greater than 31%.
Additionally, if the homeowner has a debt payment to income ratio greater than or equal to 55%, the program stipulates they must enter into HUD approved credit counseling. This service is free to the home owner.
With the criteria listed above the HAMP Loan Modification program attempts to establish an affordable first lien payment to include principal, interest, taxes, insurance, condo/homeowner association fees, and escrow shortages that are close to but not less than 31% of the homeowner's gross monthly household income.
While the information above is simple enough to understand, many Americans have been denied access to the HAMP federal loan modification program for not fully understanding it's guidelines. Borrowers have bee denied submitting inaccurate paperwork or not including all of the documents with the submission of their application.
Approval under HAMP may not be an easy process but with the assistance of trained professionals to walk you through the submission process the distressed homeowner stands to receive considerable benefits. If a trained professional is not an option due to current financial responsibilities it is critical that the homeowner studies the HAMP federal loan modification program guidelines as outlined by the federal government. This bit of due diligence can save time, money, frustration and the borrower's home.
Millions of Americans have been living with the very real possibility of losing their homes. The HAMP Federal Loan Modification Program which begun in March of 2009 is one of the many programs to help alleviate this burden. The federal Home Affordable Modification Program, a.k.a. HAMP was designed to assist troubled home homeowners facing possible foreclosure the opportunity to keep their home. There are more than a few stipulations but if eligible, the HAMP Federal Loan Modification Program and give you the help you need to keep your home.
HAMP provides federal incentives to entice both banks and borrowers to participate in loan modifications and avoid home foreclosure. With millions of Americans facing financial difficulties it is important to understand the qualifying criteria. The HAMP Federal Loan Modification program is available to:
-Borrowers currently living in their property when applying and it is their primary residence.
-Their mortgage was entered into prior to January 1, 2009
-The mortgage is under $729,750 for a single family residence, under $934,200 for a duplex, $1,129,250 for a triplex and $1,403,400 a fourplex/4 unit home.
-Borrowers can be current or less than 60 days delinquent and are determined to be in imminent default, or 60 days or more delinquent.
-There must be evidence of financial hardship. This could mean loss of employments, death of a spouse, or loss of household income.
-If the borrower is in foreclosure, in pending litigation regarding the mortgage, or they are in active bankruptcy they are eligible for HAMP.
-Mortgages can not have entered into a Trial Period Plan under HAMP. However Mortgages can have been previously modified.
-Borrower's first mortgage must be guaranteed by either Freddy Mac or Fannie Mae.
-The borrower must show a hardship for monthly housing expense to income ratio greater than 31%.
Additionally, if the homeowner has a debt payment to income ratio greater than or equal to 55%, the program stipulates they must enter into HUD approved credit counseling. This service is free to the home owner.
With the criteria listed above the HAMP Loan Modification program attempts to establish an affordable first lien payment to include principal, interest, taxes, insurance, condo/homeowner association fees, and escrow shortages that are close to but not less than 31% of the homeowner's gross monthly household income.
While the information above is simple enough to understand, many Americans have been denied access to the HAMP federal loan modification program for not fully understanding it's guidelines. Borrowers have bee denied submitting inaccurate paperwork or not including all of the documents with the submission of their application.
Approval under HAMP may not be an easy process but with the assistance of trained professionals to walk you through the submission process the distressed homeowner stands to receive considerable benefits. If a trained professional is not an option due to current financial responsibilities it is critical that the homeowner studies the HAMP federal loan modification program guidelines as outlined by the federal government. This bit of due diligence can save time, money, frustration and the borrower's home.