The Making Home Affordable Modification Program

HAMP – the Home Affordable Modification Program has been specially designed by the federal government to help approximately 4 million struggling American home owners avoid foreclosure, avail favorable loan terms, and to keep their homes. The program basically supports alteration of the terms and conditions associated with the mortgage, reducing the interest rate, and if required extending the loan tenure.

It’s required to qualify for the home affordable modification before availing the benefits. The federal government has provided the “Home affordable modification program guidelines” to the lenders for determining the eligibility of potential borrowers. The main objective of the making home affordable modification program is to help home owners avoid foreclosure by making regular monthly mortgage payments. Usloanz can help you qualify for the program.

Save Your Home with Loan Modification

How HAMP works

If you’re unemployed or your income has reduced, you can reset your monthly mortgage payments up to 31% through HAMP. The duration of your reduced monthly payments depend upon your particular financial circumstances. The core objective of the making home affordable modification is to provide optimum mortgage repayment conditions so the borrower does not default since the home value has decreased and the borrower owes more than what the mortgage is worth. Banks favor the federal home affordable modification program because it helps them in cutting loses occurring due to foreclosed homes.

Due to ongoing recession, the number of defaults while making the mortgage payments is increasing, the primary reason being it’s easier to rent a home rather than own it. The second factor is the cost of repairs involved. Some of the homes are so badly damaged; it’s not possible to salvage them through any kind of credit relief programs. Many homes which have been foreclosed are still too expensive for the new buyers. The Obama home affordable modification program is specially designed to provide a solution for these types of problems. It’s recommended you avail the free non-binding help services provided by Usloanz to know more about how HAMP works.

Contact An Attorney

Talk to a Loan Modification lawyer near to your city

Checklist to qualify for HAMP

It’s extremely important to qualify for HAMP. The mortgage attorneys at Usloanz can analyze your monthly income and help you qualify for the program. Please provide us your contact details by filling up our online application form so our attorney can call you at your convince and provide the non-binding consultations, study your particular financial conditions and help you qualify.

Are you currently in default of your mortgage payments, or likely to default in the near future?
Do you own your home and live in it?
Is your home your primary residence?
Was your mortgage taken out before January 1, 2009?
Is your current payment more than 31% of your gross monthly income?
Is your loan amount less than or equal to $729,750? (2 to 4 unit homes have higher limits)

Applying for HAMP

Applying for HAMP includes the following steps:

Contact your loan provider or lender and put up your application to be considered for the home affordable modification plan.
Get reviewed for the HAMP eligibility.
If you’re currently undergoing the foreclosure process, it has to be halted.
Fill up your Home Affordable Modification Program HAMP application form, and include the following documents:

The borrower’s statement
Hardship letter or affidavit
Last 2 years federal tax returns
Recent 2 months bank statement
Income proof – pay stubs, pay slips or details of your salary account
Financial statement

Advantages of HAMP

The home affordable modification program provides several types of benefits which make it easy for the borrower to redeem the existing mortgage. The benefits are:

Reduce your monthly mortgage payments up to 31% of your gross monthly household income
Save money by reducing the interest rate – as low as 2%
If you still find it difficult to repay even after reducing the interest rate, your lender can

Extend the loan term up to 40 years
Defer the payment on a certain portion of your mortgage amount
Forgive a certain portion of your net payable mortgage debt (optional)

You get a 3 month trial period from your lender. If you’re successful in making the payments during the trial, your mortgage payments get fixed at new interest rates for at least five years
Even after five years, the interest rates will never go higher than the market interest rates
You earn a “Pay-for-Performance Success Payment” from the federal government for each mortgage payment you make on time. The payments lower your principal owed on the mortgage. The government pays $1000 for five years after 1 year of regular payments
If you’ve a second lien attached with your primary mortgage, you may qualify for the 2nd lien modification program (2MP) which helps loan providers and lenders in reducing the interest rate, extend the loan term, or defer a certain portion of the 2nd lien, or even waive off the lien altogether.
The home affordable modifications are totally free – there’re no processing fees involved