Best Assistance For Homeowners Facing Problem In Mortgage Loan Payments

Homeowners that can’t pay their monthly mortgage loan payments because of financial hardships might get qualified for the Federal Loan Modification Program or HAMP. Federal mortgage assistance plan is part of the Obama Administrations Making Home Affordable Refinance Program. HAMP is appropriate for those homeowners who are facing problem on their mortgage payments and having difficulty meeting their obligations because of financial hardship. The program is even appropriate for homeowners that have missed payments because of financial hardships.

Mortgage loans backed by Fannie May and Freddie Mac

Banks as well as other lending institutions which provide home mortgage loans might be reluctant to a loan modification. Generally a mortgage service would do what’s in their best interest. They can even consider that it’s in their best interest to foreclose on a property in spite of going for loan modification. If the existing mortgage is owned or assured by Freddie Mac or Fannie May, the mortgage service is order by the Federal Government to contribute in the Home Affordable Modification Program. This signifies that the mortgage services need to offer a loan modification process to homeowner which is easy to qualify for the program if Freddie Mac or Fannie May owns the loan. A mortgage service could even contribute in HAMP if the loan isn’t owned or guaranteed with Freddie Mac or Fannie May, even though participation isn’t mandatory.

Home Affordable Modification program qualification

• Need to be the occupant of the home
• The amount still owed on the mortgage for a single unit home need to be less than $729,750 (multiple units vary)
• The homeowner(s) monthly total earnings should be more than 31% of the modified loans total monthly payments, counting property tax as well as insurance.
• The existing mortgage was started on or prior to January 1, 2009
• Should have a standard financial hardship that won’t allow the homeowner to make their present loan payments

So as to reduce the monthly payments to an amount up to 31% of the homeowner(s) total monthly earnings, the rate of interest for Home Affordable Modification Program could go as low as 2%. The loan can even be extended for 40 years, though it isn’t mandated. Depending on the situations, a balloon payment could be affix to the modification.