Hard as most Americans work, there are still many folks who are having trouble making their monthly mortgage payment. In 2009, the federal government developed the HAMP plan to help troubled homeowners. Recently, there have been new home affordable modification program guidelines.
Pittsfield, MA -- (SBWIRE) -- 02/15/2013 -- Credit-yogi.com would like to share the new changes with everyone, such as:
- Debt Limits
- Qualifying Properties
- 2nd Chances
- Principal Reduction Incentives
Changes in Debt Limits
Prior to January, 2012, a homeowner’s debt-to-income ratio had to be at least 31%. That seemed reasonable in 2009 when the home affordable modification program qualifications were first introduced. As it turns out, a great number of struggling homeowners were still having difficulty paying their mortgages every month, so the new plan decreases the DTIR to 25%. This opens the field of qualified applicants and provides assistance to thousands more property owners, enabling them to retain possession of their homes.
New Property Qualifications
Upon its inception, the only people who qualified for HAMP assistance were those who resided in the property they were requesting modification on. Now, the new home affordable modification program guidelines allow those who own rental properties and those whose commercial premises are in danger of foreclosure to qualify. This keeps income-generating properties in the possession of their owners, rather than going back to the lenders that originally financed them through foreclosure.
HAMP Defaulters get 2nd Chances
Qualifying for HAMP help in 2009 was a bit more difficult than it is now, particularly if a person defaulted on their first modification. Those who couldn't keep up on the new payments were immediately disqualified from the program. The updated home affordable modification program qualifications give people who default a second chance, so even those folks who are still having a hard time financially can try agai for HAMP aid and get it.
Know More about New Home Affordable Modification Program Guidelines
New Principal Reduction Incentives
The way HAMP works is by encouraging lenders across the country to participate in the program by offering them great incentives to do so. Before the new home affordable modification program guidelines took place, nowhere near as many financial institutions got involved with the program as there are now. If a homeowner is underwater (owes more than the house is worth), lenders are willing to reduce the principal of the mortgage loan for roughly 70% of applicants. That’s an enormous change from earlier on and makes it much easier for homeowners to afford their payments.
http://www.Credit-yogi.com is a caring, highly respected website located in Pittsfield, Massachusetts that connects consumers who have issues or questions about the law or money with the professional wizards who can provide solutions to those issues. There is never a charge for this service, and it’s available all day, every day. For a free initial consultation, dial 866-964-9644.
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