The federal government has allocated more than sufficient amount of money to assist struggling homeowners to keep their homes in the form of HAMP, standing for Home Affordable Modification Plan. While it is aimed to allow people to modify their mortgages into more affordable loans with lower monthly payments, many are confused whether they would be able to qualify.
Are you able to qualify? Is there anything you can do to improve your chances of successful modification application? Below are the answers to most common questions.
Am I Eligible To Qualify For Loan Modification Under HAMP?
Millions of borrowers are expected to get assistance under HAMP, provided basic qualifications are met. If you use your home as a primary residence, and took out your mortgage before January 1, 2009 you are able to qualify. It is also noteworthy that only loans featuring amounts of less than $729,750 are able to be modified.
How Can I Find Out If My Lender Is Participating In HAMP?
Most lenders do participate in the Home Affordable Modification Plan as they receive sweet incentives in form of millions of dollars in federal money. The quickest way to find out is to check the government program website for a list of participating lender at www.makinghomeaffordable.gov.
How Do I Get Started?
Most likely your bank has contacted you already by phone or via mail if you had fallen behind on your payments. Once you call your bank, you most likely be forwarded to collections automatically. While collections reps may be quite persistent, do not waste your time with them and ask specifically about HAMP. In case they get too pushy trying to get some money from you and are unable to assist you with modification questions, try calling again – you may get better luck with another associate on the line. Be persistent and patient in your desire to get your mortgage modified.
How Do I Proceed With My Loan Modification Application?
Your bank will provide you with general guidance with your application. A key to success is to provide a well-documented financial statement and a hardship letter. It is important to play with numbers to your advantage. Banks use special formulas to establish qualification criteria based on your financial circumstances. Be sure to use the same calculation when preparing application documents. There is a great program called Loan Mod Quick App, which may save you hours by performing al the needed calculations for you.
Time Is Of Essence!
Do not let your confusion about HAMP prevent you from applying as soon as possible. A delay does not play to your advantage in this case. Devote some of your time to work on your application and financial statements. In case of any questions or uncertainties look for answers everywhere. There are plenty of resources available online solely devoted to HAMP problems and solutions. Loan Mod Quick App software will take out of the way any mistakes you may make with your financials. Remember: the longer you wait the lesser chances of approval you are going to have.
Lara Sawyer is the author of this article. She works successfully as a financial advisor with years of expertise on Loans for People with Bad Credit. She publishes informative articles about personal loans, home loans, credit cards, auto loans, business loans and others at http://www.fastguaranteedloans.com
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