The most common word that is being used when talking about helping struggling homeowners, who are facing foreclosure or cannot afford their monthly mortgage payments, is HAMP. President Obama created The Making Home Affordable Program to help stop foreclosures and keep homeowners in their homes by offering different foreclosure alternatives. The most popular foreclosure alternative in the program is: The Home Affordable Modification Program, or better known as HAMP.
You may think that applying for HAMP is easy. Then why are so many homeowners being denied the program that the government has created to help them? The reason it seems easy to apply is because the government has set certain requirements that borrowers need to fit into, in order to qualify. The requirements that the government has set for homeowners, who are delinquent on their loan or at risk of falling behind on payments, millions of Americans fit into. Here are the requirements the government has created for lenders to “pre-qualify” homeowners for HAMP:
· Your home is your primary residence.
· You originally obtained your mortgage on or before January 1st, 2009.
· Your mortgage payment is greater than 31% of your gross monthly income.
· You cannot owe more than $729,750 on your home.
· You are currently delinquent or in danger of falling behind on your mortgage.
· You must be employed and be able to show you can meet the modified payment.
Just fitting in to these requirements does not mean you will be approved for HAMP, which can lower your interest rate as low as 2%. You must fill out the required paperwork properly, your income and expenses must calculate into the bank formula and your complete financial package must contain the proper supporting documentation. Your financial package is the most important part to getting approved for HAMP. The forms that are needed to apply for The Home Affordable Modification Program are:
· Request for Modification and Affidavit – RMA
· 4506T – EZ (Tax form that allows your lender to get your tax returns from IRS)
· Dodd Frank Certification Form – (makes sure you haven’t been convicted of certain real estate or mortgage crimes that would disqualify you.)
Banks are now cracking down on homeowners applying more than 1 time for HAMP, which means you must complete your financial package within the government and banking guidelines from the start. Borrowers are being told
by the media and banks to deal with their lender directly, so they do not have to pay a company. This is the biggest mistake that you can make, if you are looking to get approved for HAMP. You are walking right into the trap that is being set by the banks, which will most likely lead to a lot of wasted time and a denial for the government program that was created to help you. Banks are overwhelmed with the amount of applicants looking for assistance that they cannot give the proper help to borrowers, which they deserve. This inability to provide the necessary assistance to borrowers when applying for the government program leads to paperwork being lost, forms being filled out improperly and can put you in a worse predicament then when you started the application process.
The right way to apply for HAMP is to hire an expert, who can assist you with completing your financial package, so it fits into the government guidelines. This will leave very little chance for your lender to have a reason to deny you. You should do your research and find an honest loan modification company that has assisted homeowners getting approved for HAMP and has proof of them. Hiring the right assistance will help save you the financial stress you are going through, as well as lots of wasted time dealing with your lender. Most importantly, an expert can drastically increase your chances to get approved for HAMP, which not only can save you money on your mortgage but can also stop the foreclosure on your home.
For more information on the Making Home Affordable Program also known as HAMP please visit the official web page .
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