A recent plan that was put into action by President Obama is presently assisting hundreds of thousands of Americans to circumvent foreclosure on their homes. The program’s official name is “Home Affordable Modification Program” but it is also known as HAMP for short. If you meet the qualifications for this mortgage refinancing program then it is very much recommended that you use it to your advantage. This is virtually as good as a completely clean economic start and if you are in a considerable sum of debt, as most of us are in today’s market, this can be a wonderful prospect to erase a significant sum of your debts.
Below is a outline of the guidelines for the Home Affordable Modification Program
+ Your home loan is required to have been financed earlier than January 1 2009
+ The property owner must prove that financial hardship has happened or is still going on
+ The program coverage is restricted to one to four estate items
+ The initial mortgage loan amount must not exceed $ 729,500
+ The house must be presently occupied by the property owner
+ The anticipated new mortgage payment following loan modification must not exceed more than 31% of home owners gross earnings
Below is the benefits you will obtain if you meet the criteria for the Home Affordable Modification Program
+ Mortgage term can be extended to a 40 year loan
+ Principle on the loan is reduced
+ Mortgage refinanced to a lowered interest rate ( as low as 2% )
+ The federal administration pays you $ 5,000 if you stay current on loan payments after the home loan modification is in place
If you currently meet the outline listed then the first step is to contact the organization that is now financing your home mortgage and verify with them that you are eligible for the Home Affordable Modification Program. It will be helpful to you to have a hardship letter already written to explain all present economic hardships you are going through. Next you will need tax returns, income stubs or any other resources to illustrate verification of what your yearly salary is and has been for the preceding two months. Upon inspection and approval the home loan modification will be drawn up by your loan negotiator and in accordance to your degree of hardship suffered you may get both the 40 year mortgage term inclusive with a 2% refinance rate! After you prove your capability to pay the refinanced loan without a slip in payment then Uncle Sam will give you the $ 5,000 allowance from the home owner assistance fund. Anyone that owns a home and is in more debt than they are at ease with at present is encouraged to submit an application. This sort of government mortgage assistance agenda may be just what American homeowners need to get their financial stability back and maintain it.