When someone needs to lower his mortgage payment, he has several options, one of which is HAMP. This plan is meant to help struggling homeowners keep their houses by modifying their mortgages.
Phoenix, AZ -- (SBWIRE) -- 04/12/2013 -- Credit-yogi.com has information on HAMP’s first incarnation and the HAMP 2.0 program, and would like to share it, including:
- Why Mortgage Modification Helps
- Original HAMP Guidelines
- Tier 2 HAMP Requirements
- How to Apply
What Modification Does
When a mortgage loan is modified, it is altered to make it easier for a homeowner to afford. The original HAMP plan aimed to help 4 million people obtain modifications, but only succeeded in assisting 1.5 million. The reason for this is that the qualifications were a bit too rigid, making it difficult for people to access the program. HAMP 2.0 requirements are more relaxed, allowing many more property owners to utilize the help it provides.
Whether You Qualify for HAMP 2.0? Check Out Now
HAMP Tier 1 Eligibility Requirements
Unlike HAMP Tier 1, the HAMP 2.0 program allows more homeowners access to it . Some of the original HAMP requirements were: A person had to reside in the house he was requesting modification for. His mortgage had to have been obtained on or before January 1, 2009, and his payment had to be more than 31% of his gross monthly earnings. He had to be behind on his payments or be close to falling behind on them, and he had to be able to prove financial hardship. He also had to be able to show an ability to afford the adjusted payment.
HAMP Tier 2 Qualifications
HAMP 2.0 Requirements allowed more property owners to benefit from the program. Here are a few of the new eligibility guidelines. An individual can request mortgage modification on a rental property that he does not live in, and his payment can be as little as 25% of his gross monthly income. Financial incentives to lenders went from 18 cents on the dollar to 63 cents, encouraging more financers to participate in the program. This is virtually guaranteed to increase the number of approvals.
Applying for HAMP Tier 2
Applying for the HAMP 2.0 program is easy; just choose any participating lender, obtain the appropriate forms, and fill them in. Be sure to be totally honest about one’s financial position. Don’t stretch the truth to make oneself look better to the lender. All information will be checked, and fibbing even a little bit will be unfavorably viewed. Get documentation of financial hardship and its effect on one’s life, and don’t make it worse than it really is.
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