Obama’s Federal HAMP Loan Modification – Checklist to Get Started
June 10th 2010 Posted at letter of recommendation
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Learn what is required to apply and qualify for Obama’s federal loan modification program, called Home Affordable Modification Plan, or HAMP. The program is paid for by $75 billion in stimulus money, and is designed to help at risk homeowners-both those who are in default and those who are at imminent risk of default. The goal is to provide the borrower with an affordable and sustainable monthly payment to help them avoid foreclosure.
The federal government has mandated standard approval guidelines for everyone-this means that if you can prove you fit within those guidelines you have a very good chance of getting a loan workout. Learn the guidelines and you are on your way to a lower mortgage payment.
HAMP Checklist:
Who May Apply-
- Loans on primary residences
- Loans originated before January 1, 2009
- Loan amounts less than $729,750 for 1 unit properties (higher for 2-4 units)
- Current payment equals more than 31% of gross monthly income (including principal, interest, property taxes, homeowners insurance, homeowners dues)
- Document a financial hardship situation
How to Apply:
- Contact your lender and request to be considered for Obama’s Home Affordable Modification Plan
- Complete an affidavit of hardship and write Hardship Letter
- Prepare your financial statements detailing your income and expenses
- Complete Borrowers Statement
- Provide proof of income-paycheck stubs, tax returns, award letters, roommate income, etc.
- Provide 2 months bank statements
How to Qualify:
- Determine your target payment using the program guidelines
- Compute your debt ratio so that you fit with the approval criteria and can meet the target payment
- Adjust your financial statement and budget to show the correct amount of disposable income with new target payment
- submit a complete and accurate proposal package
Obama’s Home Affordable Modification Plan is designed so that borrowers can apply and qualify by working directly with their lenders. Homeowners are discouraged from hiring any third party company or attorney and paying any upfront fees. This program is free to borrowers, and has been designed so that the average homeowner can successfully modify their own loan. Simply learn the basic guidelines, work on your financial statement and make the necessary adjustments, then contact your lender to begin the approval process. You can learn and use the very same formula your bank will use to qualify you-take advantage of a software program that mimics the federal guidelines to make sure you prepare your application correctly. Simply input your own specific income and expenses and your debt ratio, target payment, new interest rate and disposable income are all calculated automatically for you.
Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier! Visit loan modification to order today.
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