Digital News Report – The goal of the Making Home Affordable Program (HAMP) is to help homeowner’s that are in danger of losing their homes to lower their monthly mortgage payments to be no more than 31 percent of their total monthly income.
The lenders that participate in this government run mortgage modification program will then work with the homeowner that applies for the assistance to lower their payments either by extending the length of the loan, lowering the mortgage loan interest rate, by capitalizing delinquent mortgage payments and by forbearing principal. They lender may do any combination of these steps to help the homeowner lower their monthly mortgage payments.
The government mortgage loan modification program is free to participate in but you must be eligible to apply. To be eligible you need to be past due on the first mortgage payment and are at risk for defaulting on the home loan. You can be in foreclosure but you must own and live in the property that you want to modify the loan on. The property should be a single family dwelling or if you live in a 1 – 4 unit apartment complex, you need to live in one of the units. Manufactured homes and condominiums can also apply as well as those that may have a cooperative share mortgage loan.
The government home loan mortgage program will end on December 31, 2012. You also have needed to complete your first mortgage loan financed for the property before January 1, 2009 to participate in the program. There are limits on the mortgage loan amounts on the property for participation in the loan modification program. Here is the limits as follows:
To find out more about the HAMP program and look up to see if your lender is participating in the program and steps you need to follow to apply, please visit makinghomeaffordable.gov for more information.
If you can’t qualify for a government loan modification, other options are being made available by several lenders. There are also traditional home loan refinancing with the mortgage interest rates at historically low rates.
By: Victoria Brown