Will the Home Affordable Modification Program Help Save Your Home?
Today the US Government under President Obama's Administration are helping to reduce the number of homeowners being faced with foreclosure.
One particular program that is proving effective as part of home foreclosure prevention is known as HAMP (Home Affordable Modification Program).
Through this plan the homeowner works in conjunction with the lender to bring their mortgage payments down to a level that they can more reasonably afford.
This program is available to any homeowner who is having problems paying their mortgage, who has defaulted on payments or where the process to foreclose on the property has commenced.
Even those whose homes have already been foreclosed on are also able to apply for this program if they wish.
Should they choose to go down this route then immediately an application is made the process will be stopped whilst it is being considered.
So what are the benefits to you as a homeowner to consider applying for HAMP? Below we list some of the reasons.
1.
As long as you as the debtor are able to keep up the reduced monthly payments for 3 months then the new lower payments you are making will remain for the next five years.
Allowing you sufficient time to then get your finances back in order.
2.
Secondly after the five year period at the lower payments has finished then the lender can only increase the interest rate on the loan as it stands by no more than 1% each year.
Plus at no time are they allowed to put it higher than the market rate on the day that the loan you originally had was modified.
3.
Finally when it comes to getting your loan modified you will have no charges or fees to pay as you would normally have to do if you choose to refinance.
One particular program that is proving effective as part of home foreclosure prevention is known as HAMP (Home Affordable Modification Program).
Through this plan the homeowner works in conjunction with the lender to bring their mortgage payments down to a level that they can more reasonably afford.
This program is available to any homeowner who is having problems paying their mortgage, who has defaulted on payments or where the process to foreclose on the property has commenced.
Even those whose homes have already been foreclosed on are also able to apply for this program if they wish.
Should they choose to go down this route then immediately an application is made the process will be stopped whilst it is being considered.
So what are the benefits to you as a homeowner to consider applying for HAMP? Below we list some of the reasons.
1.
As long as you as the debtor are able to keep up the reduced monthly payments for 3 months then the new lower payments you are making will remain for the next five years.
Allowing you sufficient time to then get your finances back in order.
2.
Secondly after the five year period at the lower payments has finished then the lender can only increase the interest rate on the loan as it stands by no more than 1% each year.
Plus at no time are they allowed to put it higher than the market rate on the day that the loan you originally had was modified.
3.
Finally when it comes to getting your loan modified you will have no charges or fees to pay as you would normally have to do if you choose to refinance.
