The HAMP program is best match for struggling homeowners who are finding the ways out for long time so that they can become regular on mortgage loans.
HAMP is about making home affordable for the homeowner. These homeowners are already paying high mortgage payments as the result of their first home, and which is making them financially down. The mission of the loan modification is to ease the mortgage loan payments in the way where the financial burden on the homeowners is reduced considerably. However there are certain conditions under which the homeowner becomes eligible for the HAMP program. As the part of eligibility conditions, the homeowner should have his/her current mortgage before Jan. 1 2009.All the real estate properties which have been under the foreclosure process can also apply for the HAMP loan. The mortgage property of the homeowner should be his/her primary residence. The current mortgage on your primary property should be under $729,750. This monetary limit is only for single-family home. Higher monetary limits have been set forth for the two, three and four unit residential properties.
A new regulation for HAMP loan modifications has been effect from June 1. There are added loan modification programs, counting one for borrowers without jobs. Later on, Freddie Mac and Fannie Mae are likely to put into service additional new HAMP loan modification programs that will connect the concept of main reduction.
In case the homeowner qualifies successfully under the HAMP, the lender will reduce the mortgage interest rate to maximum of 2 percent. This is done to reduce the mortgage payments of the lender to 31 percent ratio. If the lender desires he has the power to extend the mortgage tenure to 40 years, and also may even reduce the principal amount. What's more, the homeowners get $5000 incentive under the modification program. HAMP loan modification has already helped many homeowners to save their home from the foreclosure and become the proud property owners. Get ready to avail home affordable modification program. The ultimate purpose of this type of program is to help the homeowners who are running behind in their home mortgage payments by modifying their current mortgages and transforming them into affordable mortgages.
In this way it would be much easier for the homeowner to get free from the control of mortgage loan within limited time frame. However, the homeowner has to keep in mind to repay the modified mortgage loan in timely manner without missing on any of the payments. If you miss on any of the payments, then there's good probability that you have to pay more. In addition, you will not be given a second chance once you fail on making the mortgage loan payments. Make sure that you read through the HAMP loan terms before applying for it. You will have a clear idea about the procedures and will feel confident about HAMP.
Keep in mind that these programs only apply for distress in to the ‘home affordable modification program'. If you are not able to qualify under the program, you might still get eligible for a different loan modification or other workout foreclosure alternative program from your mortgage lender. To get more sufficient details on the HAMP loan modification programs, guidelines and process requirements, it is recommended to get help of reliable services provider online. To learn supplementary details concerning how to avail a loan modification through your lender, visit refinanceitt.com to get real help with Obama's hamp loan modification program to save your precious house.
Author is writer for www.Refinanceitt.com which provides information on HAMP Loan Modification guidelines and process to get eligible. This information can help you in taking the right and timely decision.