There are many homeowners out there that are having a bit of difficulty making their monthly mortgage payments. The reasons for this trouble vary: Maybe an income contributor lost his job or perhaps someone became quite ill and was unable to work. For those people who may be in danger of foreclosure on their homes, the home affordable modification program (HAMP) can help. The following will explain how it can do so and how to apply for it.
Phoenix, AZ -- (SBWIRE) -- 11/28/2012 -- Over the past few months, foreclosure rates have decreased somewhat, but this does not mean some folks aren’t still living with the threat of losing their homes to their lien holders. Due to financial misfortunes, often not of a homeowner’s making, paying the mortgage every month has become a challenge, and banks and other lending institutions are filing notices of intent to foreclose. There is a way for these people to retain ownership of their abodes. The Obama administration devised the homes affordable modification program just for hard-working property owners who are having a tough financial time right now. This government-sponsored plan offers different ways to aid a person, and they are described below.
Reduce Your Monthly Home Payments with Home Affordable Loan Modification Program
One way the home affordable modification program can help distressed homeowners is by offering a mortgage loan modification. This means, simply, that several kinds of changes are made in the terms of the original loan. These changes can include cutting one’s interest rate almost in half or stretching out the loan repayment time, or both. There are several qualification requirements for this plan, such as the property owner must live in or be renting the house he is requesting the modification for. He must also provide proof of a financial hardship and documentation of income indicating he can afford the reduced payments. The property cannot be condemned, and an owner must not have committed a felony of any kind in the past 10 years.
The homes affordable modification program can also offer a refinancing option. This means that one’s original mortgage loan is paid off by a different lender and an entirely new one is drawn up, one with better, more affordable terms. Called HARP (home affordable refinance program,) this restructured loan program also has eligibility requirements. One must be employed in order to qualify, such as that the original loan must be owned by Freddie Mac or Fannie Mae. The borrower must also be current on his mortgage and have a strong payment history for the past 12 months. Both the HAMP and HARP plans can be applied for through one’s mortgage servicer.
Credit-yogi.com, an online marketing company out of Pittsfield, Massachusetts, has more information about HAMP and other loan modification options and is happy to share it.