One must learn how to qualify for loan modification under the revamped home affordable modification program or HAMP as the task of getting an approval could be complicated even if the qualification rules and regulations have been relaxed. By qualifying for the revised HAMP struggling borrowers can make monthly payments sustainable.
Mocksville, NC -- (SBWIRE) -- 09/25/2012 -- Unless one learns how to qualify for loan modification with his mortgage servicer, his task of getting approved could be difficult. Remember, the home affordable modification program or HAMP is well into its fourth year of action and till date, it has helped millions of distressed borrowers in making monthly payments more sustainable over the long run. The main goal of the HAMP is to stabilize the sagging housing market and for ensuring this, the federal government very recently, even changed its qualification guidelines so that more financially struggling borrowers could take advantage of the plan. By qualifying for the HAMP Tier 2, as it is being popularly termed, borrower has the chance to:
1. Lower the rate of interest to as low as 2%
2. Get the loan term extended up to 40 years
3. Secure reduction in home loan principal
4. Reduce monthly payments drastically
Who qualifies for loan modification with the HAMP revamp?
In order to qualify for the HAMP, probable applicant has to satisfy certain requirements at two levels. These are as follows:
1. Personal eligibility
At the individual qualification level, one has to ensure that:
(i) He is facing a well documented financial hardship situation
(ii) Applicant must demonstrate inability to pay monthly installments
(iii) To qualify for the HAMP plan, it is not necessary that borrower has defaulted on payments
(iv) Those already faced with foreclosure can apply for the HAMP and immediately stop the process temporarily
2. Mortgage eligibility
During the effort to learn how to qualify for loan modification through the revised HAMP, applicant must take note of the following things to determine eligibility of his mortgage for the federal loan workout process.
(i) Owned property under consideration need not be primary residence. Even rented homes can qualify
(ii) Existing home mortgage loan should have been securitized either on or before the 1st of January, 2009
(iii) Anyone whose present mortgage is delinquent or a possible default in payment is foreseeable can qualify
(iv) Level of unpaid principal home loan balance cannot exceed $729,750 for a single unit family home. The limit can be more for family homes with 2, 3 or 4 units
(v) Current monthly mortgage installments have to be more than 31% of the borrower’s gross monthly income
(vi) Mortgage servicer has to necessarily be an active participant in the HAMP loan modification procedure
On the internet there are firms which teach borrowers on who qualifies for loan modification plans with the HAMP. Such agencies have a team of competent mortgage professionals who can guide applicants in navigating through the complicated HAMP process with ease. Hence, by seeking their help, borrower can get valuable information about the changed HAMP qualification criteria and process requirements. However, one must make sure that he is working with a reputed service.
USLoanz is a leading mortgage service company in the United States which has been in active business for the past seven years or even more. Over the years the firm has helped borrowers to successfully modify or refinance their mortgages and save homes from getting foreclosed. Customers, who are interested in determining their eligibility for loan modifications, principal reductions or home refinancing.