Home Affordable Modification Program (HAMP)

1. Loan Is Secured By One-To Four-Unit Home That Is Your Primary Residence.

2. You Have Received Mortgage On Or Before Jan 1, 2009.

3. Your Monthly Mortgage Payment On First Mortgage (Including Principal, Interest, Taxes, Flood and Hazard Insurance, and Homeowners Association Dues, If Applicable) Is More Than 31% Of Your Verified Gross (pre-tax) Income.

4. You Are Facing Financial Hardship Paying Your Mortgage Such As Rate Adjusted, Loss Of Job, Medical Expenses, Divorce, Etc.

5. Your Mortgage Balance Is Equal Or Less Than:

   • 7,29,750 For 1 Unit
   • 9,34,200 For 2 Units
   • 11,29,250 For 3 Units
   • 14,03,400 For 4 Units

Homeowners who qualify for Home Affordable Modification Program are supposed to complete a trial period of three or four months to prove that they will be able to make their reduced payments on time if their mortgage is modified and payments are reduced. In order to make mortgage payments affordable, your lender can reduce your interest rate to as low as 2 %, or extend the term of loan to 40 years or forbear (defer) payments on your principal. An amount of the principal balance can also be forgiven, although that is optional on the part of the lender.

Note: IF you are not eligible other options may still be available because there are several programs available to make your mortgage affordable. Fill our Loan Modification Application to find one that may be right for you.

Benefits Of Home Affordable Modification Program

Under HAMP, Mortgage Servicer May:

1. Reduce The Interest Rate Between 2-4%

2. Lower Down The Payments To No More Than 31% Of Your Income

3. Fix The ARM Mortgage For The Life Of Loan

4. Extend The Term Of Loan Up To 40 Years

5. Offer A Principle Reduction (In Case Of Upside Down)

6. Put The Foreclosure Proceedings On Hold

7. Add The Late Payments & Charges On The Back Of The Loan If You’re Behind.

Home Affordable Modification Program Process

Loan Modification is an extensive process in which official procedure is submitted back and forth to the lender and analyzed and reviewed. Additional credentials may be requested by the lender and reviewed further. This process may takes upwards of 120 days until a loan modification is achieved. To be proficient at the entire process, a loan modification delegate must pay special attention to each step and make sure the documents needed are in order and ready to submit to the lender.

• Apply Online If you are facing foreclosure or hardship in making your mortgage payments, you should Apply For Loan Modification immediately because there are several programs offered by Govt. and you may qualify for one of those which will lead to save your home.

• Review Your Financial Situation Financial statement needs to be prepared together with a detailed list of your expenses (food, gas, credit cards and other financial obligations) in a worksheet and calculate the average costs on each item for the past 3 months or so. This is important because most lenders would ask questions on your financial situation and require you to submit a Financial Statement.

• Contact Your Lender Lender needs to be called up to make him aware of your situation. Since lenders are getting calls in huge volume for mortgage modifications these days it may take some time to get hold of the loss mitigation department.

• Fill Out Paperwork Once you are pre-qualified for mortgage modification, the lender will send an information packet and a financial worksheet. Documents are needed to be attached which have collected along with the worksheet. This is for your lender to assess your financial situation and interpret whether you can pay your mortgage after home loan modification.

  What is needed to be proved by filing out the paperwork is that the loan modifications will help improve your situation and make your payments manageable.

  Lender May Need These Documents.

  • Hardship Letter

  • Paystubs and Bank Statements For Past 2 Months

  • W-2 Form For Last 2 Years If You’re Employed

  • Form 1040 For Last 2 Years If You’re Self Employed

  • Most Recent Mortgage Statement

  • Property Tax Statements

• Trial Period If you qualify for the program, you’ll enter a trial period. Making all of your payments during this trial period will demonstrate that you can afford the modified payments and that they work within your budget.

  During the trial period, you need to prove that you can afford monthly payments along with other expenses once the loan modification is done. Only then you have a fair chance to get your loan modified.

• Approval Get the mortgage modified and home affordable