Be Informed When Applying For The Home Affordable Modification

September 10, 2009 · Filed Under Loss Mitigation 

In February of this year, the United States government announced a program that was set into motion in order to help homeowners keep their homes and avoid the threat of foreclosure. This program gives every homeowner in financial duress a glimmer of light in an area that seemed so dark and it is called the Home Affordable Modification Program.

President Obama put this plan into effect this year in order to pull people out of potential financial ruin and keep the economy moving. Most homeowners who have a mortgage may be eligible and monthly payments will be greatly reduced to a point where their mortgage payment fits into their budget.

This program has the potential to make great strides in helping both the lenders as well as the homeowners, and seventy five billion dollars has been allotted for it. It not only is it designed to reduce personal debt, but it also helps in alleviating the stress that homeowners facing potential ruin are feeling.

Are you eligible?

Due to the massive number of homeowner’s and the fact that most lenders are not adequately staffed, now is the time to jump in and get help in paying down your mortgage. It will help you avoid foreclosure and the credit issues that will haunt you for the next several years. There are guidelines put into place that will let you know if you qualify for the home affordable modification program.

One of the biggest factors will be when your mortgage started. Any home mortgage that originated before January 1, 2009 may be eligible.

Another major stipulation to being in this program is that your home has to both owner occupied and your primary residence. If the subject property in non-owner occupied, has someone else residing in the home and paying you rent then you cannot qualify for this modification. Your home also has to be the place that you currently live. The best way to prove this fact during the application process is by simply showing a piece of mail that has a recent date, your name, and address.

Your monthly income must meet specific guidelines as does your current unpaid mortgage balance. It is important to speak with a professional before applying for help.

There will likely be a short but thorough verification process where all of your income, assets and expenses will be scrutinized. Be sure that you claim every asset that you have and practice full honesty during the entire process. Lying about any of these issues will get you into trouble at some point during the application process and could cause you to be declined from the program later on.

Don’t worry about not qualifying in case you are in the midst of a bankruptcy filing. This will not necessarily be a deal breaker for you. The important thing is that you are truthful and that you disclose all of the details during the application process.

The program will be ending the end of December 2012, but all payments will continue for several months after the finish.

It is important to mention that the government is currently giving an incentive payment that encourages applicants during the initial process. A definite bonus for those who have found themselves strapped financially.

The home affordable modification program is a great way to get a boost on your home mortgage payments. It will not only help you with reduced mortgage payments, but also keep your home from being foreclosed.

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