The Home Affordable Modification Program Can Bail You Out

As of the first of June of 2012, HAMP (Home affordable modification program) was amended to include previously ineligible homeowners, and it saved my home.  It wasn’t that I faced a huge life catastrophe, I was just young, and over estimated my ability to pay a high home mortgage.  That nearly cost me my home. 

·         What is HAMP

·         What are the Benefits of HAMP

·         Recent changes in HAMP that can help you

What is HAMP

Hamp is the Home Affordable Modification Program introduced by the Obama administration, to help eligible home owners lower their mortgage payments to no more than 31% of their gross monthly income with a home loan modification.  Initially, the adjustments are instituted in a trial period, but if the home owner makes three payments on time, the modification becomes permanent.

What are the Benefits of HAMP

Hamp is beneficial to both lenders and homeowners.

For lenders:

1.       The loan does not go into default

2.       Government subsidized funding providing incentives for participation

3.       Saves resale and foreclosure expense

For Homeowners:

1.       Lower payments

2.       An opportunity to avoid foreclosure

3.       Potential reduction of interest rates, principal, and even late fee restructuring

  Recent changes in HAMP that can help you

Recent changes relaxed some of the requirements for acceptance into HAMP to allow more homeowners to benefit from it. 

1.        Homeowners may be accepted now even if the home is a rental or is intended to be a rental

2.       Homeowners whose monthly payments are not more than 31% of their gross monthly income

3.       Homeowners who defaulted on trial payments on HAMP in the past.

4.       Homeowners who defaulted on previous HAMP home modification

Though not every loan modification company participates in HAMP, there are huge benefits to both lenders and homeowners who choose to participate.  Because of these recent changes, it is easier than ever to take advantage of HAMP. If you’re facing foreclosure, you need to act now.  It’s simple to get started.  Fill out the forms provided for you here at Credit-yogi.  A legal representative will contact you, and you can learn how much participation in the program could save you.  There’s no obligation, nothing to lose, and being able to keep your home to gain.