There are many people still facing foreclosure as a result of the depressed economy. While economists are telling us things are improving very few people are seeing it. It is because of the economy that HAMP loan modifications are still growing and still necessary options for home owners.
Pittsfield, MA -- (SBWIRE) -- 03/18/2013 -- The Home Affordable Modification Program also known as HAMP is funded by $75 billion in stimulus funds. The purpose of the program is to help millions of borrowers remain in their homes instead of facing foreclosure.
When you are struggling with mortgage payments, the first thing you need to learn is how to qualify for HAMP loan modification and submit your application. Some of the things you want to think about before you even begin the final process include the following:
- Make sure you know the five requirements for eligibility before you even apply for modification
- When you submit your application make sure it is accurate and acceptable
- Periodically follow up with the lender regarding the progress of your application
Loan modification or HAMP is a federally-subsidized program under the Obama administration that was designed specifically to help struggling homeowners. There are specific guidelines for approval and a standard method that is used during the modification process. With the standard guidelines and methods in place it is easier for borrowers to learn if they qualify and to help them understand what is required when they complete the modification application.
Qualify For HaMP Loan Modification , Send Request Here to Get Approved
Another provision of HAMP includes an explanation of debt ratio and the methods the federal government uses to assess the borrower’s current ratio as well as the new debt ratio based on the modification process. The provisions under HAMP include the following:
- New payment is subject to a maximum of 31% of gross household income
- If you multiply the current total gross income by 31% you will know what the new target mortgage payment will be
- In order to learn the new principal and interest target payment it will be necessary to deduct property taxes, homeowners’ insurance and any Homeowners’ Association dues
- In order to meet the basic requirements the lender can lower the interest rate to 2% and extend the loan to 40 years
If you are a homeowner wishing to apply for loan modification or HAMP you need to learn the basics first. It can be confusing, but there is a computer software program available to help you through the process. However, you can also obtain help in filling out the paperwork by working with one of the financial experts at Credit-Yogi.com.
About Credit-yogi
Credit-yogi, an online marketing service located in Pittsfield, Massachusetts, reminds consumers if a deal seems too good to be true, it usually is, so use some common sense and avoid scams.