Property owners who are struggling to make their monthly mortgage payments now have hope. In January 2009, the Obama administration developed the HAMP (home affordable modification program) plan to help these hard-working Americans remain in the homes they’ve grown to love through the utilization of several options under HAMP. The following will delve into some of these options and will also shed light on where and how to apply for this assistance.
Pittsfield, MA -- (SBWIRE) -- 01/08/2013 -- The Obama home affordable loan modification program was brought to life in 2009. Its goal then was to help homeowners who were having a difficult time making their mortgage payments each month. The eligibility requirements were a bit strict upon first offering the program to people, which may contribute to why its initial success was so limited. Some of those requirements included having to live on the premises for which one was requesting modification, the first mortgage on the residence was either already in default or was about to enter that state, and one’s debt-to-income ratio had to be more than 31%. Because these conditions were so limiting, far fewer homeowners were able to qualify for the program than were originally hoped for. As of June 1, 2012, changes were made to those requirements.
HAMP (home affordable modification program) broadened its eligibility requirements to open the plan up to more people. Now someone seeking loan modification does not have to live on the premises for which he is putting in the request. His debt-to-income ratio can be less than the original 31%, and one does not have to wait to be 60 days past due on his mortgage payments to apply for HAMP. A homeowner still had to have obtained his original mortgage on or before January 1, 2009 despite the new requirements, and the property must not be condemned to qualify for loan modification. HAMP even allows those who have already been given a trial modification a second chance if they defaulted during the three-month probationary period. With the new requirements, a homeowner can request modification of a loan for a property he rents out so long as he can show proof of financial hardship and of his ability to manage the lowered mortgage payment if he is granted a modification.
Know More about HAMP Guidelines to Get Approved
The home affordable loan modification program has several ways it can help property owners. It can modify, or make changes to, the original mortgage. The plan offers refinancing, or the paying off of an original mortgage and the drawing up of a new one. People who have recently become unemployed can receive help from HAMP, also, for up to 1 year.
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