Home affordable modification program has been built to help those people who are finding it difficult to keep their homes due to the mortgages for which they cannot pay due to the financial crisis and face the threat of losing their homes.
Obama administration is trying to help out those people who are struggling to pay their debts, and for this purpose Obama's loan modification has been launched, under the scheme loan modification programs have been initiated which are supposed to help out such people. The program reschedules the payment to make it easy for the loan taker to easily pay the amount within the finances available to him so that defaulting of the loan taker is avoided which would otherwise result in making people losing their homes.
The financial crisis has left many people with loans that they are unable to accommodate in their current situation, which they would have managed easily if the crisis had not come. The hamp loan modification programs is meant to help only those people not those people who have taken loan after the beginning of the crisis. This is the reason that there are many conditions that have been applied to make sure that only the deserving people get the modification. The conditions that are applied include
- The loan must have been taken before January 1st 2009
- The loan must be under the limit of $729,750, for a single family home
- There should not have been any late payments in the last 30 days that are late by one month
- The property that is about to be foreclosed due to defaulter is eligible
- The property must be the primary residence of the applicant, and may not be a home that is only for the purpose of investment or luxury.
President Obama launched the Homeowner Affordability and Stability plan especially to help up to 9 million American families with loan modifications. This financial aid plan for the average homeowner is a $75 billion program to help the distressed homeowners prevent foreclosure. There can be obstacles which do not let you qualify or prevent you to benefit from the HAMP loan modification program. A network of home loan modification lenders and attorneys can work with you to qualify for a loan modification process that is suitable for your specific needs.
The program aims at making it easy for the people who are about to lose their home at the present or in the near future to get their payments scheduled so that the payments get to at maximum 31% if the total income of the person, that is making home affordable. The home affordable modification program is not refinancing rather it is the rescheduling of payments and decreasing the interest rate as well as the principal that is to be paid for returning the loan of a person. The period of payment can be extended up to 40 years, as well as the mortgage interest rate can be decreased to 4.5 % and can be decreased to as low as 2 %. The payment of the rescheduling is done by the government for which the money is paid through the stimulus package that is offered by President Obama. Here Refinanceitt.com is among leading loan modification companies that provides help to get approval for the obama's loan modification program with terms suitable for your needs and find the right lender, which is the key to successful restructuring.
The author is an expert writer on loan modification programs and has written many articles on Obama's loan modification program.