Home Affordable Modification Program Assistance,Help with HAMP

A new program that was launched by President Obama is currently helping millions of Americans to avoid foreclosure on their homes. The program’s official name is “Home Affordable Modification Program” but it is referred to as HAMP for short. If you meet the qualifications for this mortgage refinancing program then it is highly recommended that you use it to your benefit. This is almost as good as a completely fresh financial start and if you are in a large amount of debt, as most of us are in today’s economy, this can be a great opportunity to erase your debts.

Below is a summary of the guidelines for the Home Affordable Modification Program

+ Your home loan must have been financed before January 1 2009

+ The homeowner must prove that financial hardship has occurred or is still occurring

+ The program coverage is limited to one to four property units

+ The original mortgage loan amount can not exceed $ 729,500

+ The property must be currently occupied by the homeowner

+ The proposed new mortgage payment after mortgage modification must not exceed more than 31% of homeowners gross income

Below is what you receive if you qualify for the Home Affordable Modification Program

+ Mortgage term can be extended to a 40 year mortgage

+ Principle on the loan is reduced

+ Mortgage refinanced to a reduced interest rate ( as low as 2% )

+ The federal government pays you $ 5,000 if you stay current on mortgage payments after the home loan modification is in place

If you meet the guidelines listed then the first step is to contact the institution that is currently financing your home mortgage and confirm with them that you are eligible for the Home Affordable Modification Program. It will be beneficial to you to have a hardship letter already written to explain all current financial hardships you are enduring. Next you will need tax returns, paycheck stubs or any other means to show proof of what your yearly income is and has been for the previous two months. Upon inspection and approval the home loan modification will be drawn up by your mortgage broker and according to your degree of hardship suffered you may get both the 40 year mortgage term complete with a 2% refinance rate! After you prove your ability to pay the refinanced mortgage without a lapse in payment then Uncle Sam will give you the $ 5,000 grant from the homeowner assistance fund. Anyone that owns a home and is in more debt than they are comfortable with at present is encouraged to apply. This kind of government mortgage assistance program may be just what American homeowners need to get their financial stability back and keep it.