How To Qualify For Obama Home Affordable Mortgage Program

Introduction

With so many people out of work and the economy in astate of chaos the present administration felt the need to come up with aprogram they callHAMPorHome AffordableModification Program. While not everyone qualifies for the program, itdoes offer help for many who would otherwise face foreclosure.

Steps

    Provisions of hamp home affordable modification program

    How do hamp home affordable modification program help homeowners who are facing foreclosure? The regulationslenders participating in the program must provide homeowners helps them bylowering their mortgage payments and prevents foreclosure. Some of theregulations the lender must follow include the following:

    Payments cannot be any higher than 36 percent of the borrowers monthly income. This will be reduced to 31 percent after the government subsidy.

    Lender must lower the interest rate to as low as two percent in order to meet the income to payment ratio

    Lender must make other provisions if lowering the interest rate doesnt put the borrower in the necessary income to payment ratio such as increasing the repayment term to forty or more years

    All costs are included in the modification loan

    Even those with upside down mortgages qualify for modification if they meet the other criteria such as having the income necessary to make the payments

    For more information on qualifying for home modificationvisit our website at Credit-Yogi.com.


Things You Will Need

    Seek Out Help BeforeYou Need It

    Mostpeople have an idea they may be facing some kind of financial difficulty in thefuture, especially if the company is talking about a layoff or they know theywill be forced to retire on disability. Instead of waiting until your home isin danger of foreclosure, seekmortgage modification helpas soon as you become aware ofpotential difficulty. Many people wait because they hope the situation willchange and by the time they do something they are on a time frame and donthave the time to devote to conducting research and making the decision that isright for them.


Tips

    Where to FindModification Assistance

    Anotherreason many people wait to seek out help is because they dont know where tofindmortgage modificationassistance. Even if you dont watch the television or read thenewspapers to find the information, you can research online for solutions orask your current lender. The sooner you seek help the easier it will be for youto prevent your home from going into foreclosure and having to rush intomodification to rescue it.

    TheHAMPHome Affordable Modification Programwas designed to help homeowners whoare facing the loss of their homes in foreclosure due to the loss of a job, reduced income or other financial crisis. WithHAMP loansthe lender is required to provide apayment schedule that does not exceed 31 percent of the borrowers income aftergovernment subsidy. While many homeowners wait until the last minute to seekmortgage modification help, the earlier a borrower seeksmortgagemodification assistancethe easier it will be to work out the paymentswith the lender.