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If you are unfamiliar with your the process of applying for a loan modification under the guidelines provided by the Federal Government HAMP. Don’t worry, there is a lot of helpful information even if you don’t know a lot about mortgages. The FED has standard procedures and guidelines by which every financial institution qualifies homeowners. The key is understanding the guidelines yourself and providing accurate evidence that you fit within these guidelines.
Typically, a decisive difference between those who receive an adverse action verse those who don’t to their application is education. Many homeowners have heard about the HAMP plan, jump head first into cold water and wonder why they have been denied. While others take the necessary time to learn more about the process, the standard guidelines every financial institution abides by, and then presents their situation mirroring a modification application that would be accepted. Individuals who take the time to educate themselves regarding this process, whether it be a few hours or a few days, will be far better prepared and have higher chances of success then the homeowners who have only heard about the plan and dive in, expecting a specific result only to be refused. Left wanting!
The following guidelines will help you convince your lender and provide the best possible shot in obtaining a HAMP loan modification:
- Is your current monthly mortgage payment is in excess of 31% of your gross income?
- Is this your primary residence (the home is owner occupied)?
- Was your loan originated before January 1, 2009 (This includes refinances)?
- Is your current loan balance less than $729,750?
- If you are unemployed are you able to submit evidence that you are receiving unemployment insurance (UI) benefits?
- If delinquent, have you requested temporary assistance in the first 90 days of the delinquency?
In modifying your loan there are three main options by which a lender will modify the existing terms of your loan:
- Reducing your interest rate
- Extending the term of your loan
- Lender agrees to a principal write-down, which means forgiving a certain portion of the principal.
Educating yourself before applying is crucial to your success in obtaining and qualifying with your lender through HAMP. By understanding what is required, the purpose and reasons for a hardship letter and what needs to be addressed accurately will improve your opportunity to modify the term of your loan. Now is the time to educate yourself, don’t put off today what is necessary to your happiness tomorrow.
For more information pertaining to the loan modification please view other options “Ebook Summary”. Read the rest of this entry »