Avoiding foreclosure with loan modification programs

Often known as the Obama HAMP Loan Modification, because HAMP was instituted under the Obama administration’s reign, Loan Modification programs such as HAMP (Home Affordable Modification Program) have been a welcome relief for homeowners struggling with mortgages they could not afford.  Some were victims of predatory lending practices, others victims of the economy or even the housing market.  Whatever the reason, mortgage loan modification programs have helped many families avoid foreclosure and remain in their homes with monthly payments they could afford. 

If you are struggling with mortgage payments you cannot afford, and fear foreclosure is in your future, even if you have a HUD loan, modification assistance can be the answer to your dilemma.  Here are some points to consider:

·         What is the difference in Refinance and Loan Modification?

·         Qualification Criteria for Mortgage Modification Assistance

·         How to get started

What is the difference in Refinance and Loan Modification?

A refinance is a new loan which may or may not have better terms.  Often the acceptance for a refinance is much stricter than a loan modification.  The terms of a refinance are based on your credit rating, which is often problematic if you are seeking a means of avoiding foreclosure.  A refinance also leaves you responsible for fees and closing costs.  A loan modification, on the other hand, is designed specifically to help homeowners who can no longer afford their mortgage and are at risk of losing their home to foreclosure. 

The government provides subsidies to lenders for agreeing to modify the existing loan to bring interest rates down, give relief from penalties and fees, and even reduce principle to bring the existing payments down to no greater than 31% of the homeowner’s gross monthly income.

Qualification Criteria for Mortgage Modification Assistance

To qualify for home mortgage modification assistance you have to meet specific criteria, but acceptance for independent lenders is a little less strict than qualification for HAMP.    For HAMP the following proofs must be supplied:

·         Assessment of personal worth, assets, and debts

·         Hardship statement detailing why your mortgage is a hardship for you

·         Income verification and proof as well as documentation (if) income has decreased.

·         Proof of residence and ownership

·         Proof the initial mortgage initiated prior to 1-1-09

·         Proof total amount owed is less than $729,750

·         Proof your payments are greater than 31% of your total gross monthly income

How to get started

It is simple to begin the process.  Fill out the forms provided at Credit-yogi.  There is no obligation, and the forms are user friendly.  Once you have filled out the forms, you will be contacted by a loan modification expert who can answer all your questions and give you an idea if you will qualify and how much a loan modification could lower your monthly payments.  If you are struggling with your monthly payments, there is really no reason to wait.  The more quickly you act, the more quickly you can look forward to payments you can afford, so fill out the forms provided today!