| A Fannie Mae loan modification could offer the lower | | | | January 1, 2009 and be less than $729,750. |
| payment you need to stay in your home. The | | | | If you can answer yes to the above items, you may |
| program features some very aggressive terms and is | | | | be a good candidate for a Fannie Mae loan |
| funded by the Treasury Department. It is called | | | | modification. The plan is standardized and will offer |
| Home Affordable Modification or HAMP. This plan is | | | | certain loan modification options to qualified |
| targeted to help millions of struggling borrowers find | | | | borrowers. The goal of the plan is achieve a new |
| a solution to avoid foreclosure. Need to know if you | | | | monthly payment (including taxes, insurance and |
| qualify and how to apply? Here are some FAQ's to | | | | homeowners dues if applicable) that equals just 31% |
| help you get started. | | | | of the homeowners gross monthly income. The |
| Who qualifies for a Fannie Mae loan modification? | | | | methods used to arrive at the new payment include: |
| | | | - Reduce interest rate to as low as 2% |
| 1. Borrowers must be able to demonstrate an | | | | - Extend term to 40 years |
| acceptable financial hardship situation. This may due | | | | - Deferral of some principal balance-no interest or |
| to loss of job or income, medical issues, divorce or | | | | payments are due on this amount, but it will be due |
| separation, military service, interest rate reset on | | | | and payable when the home is sold or refinanced. In |
| adjustable loan, etc. Do you know how to write an | | | | some cases, some of your principal may be forgiven. |
| acceptable hardship letter? | | | | How do you apply for a Fannie Mae HAMP loan |
| 2. You must be able to prove your income and be | | | | modification? Check your lenders website to make |
| able to prove in black and white that you will be able | | | | sure they are participating in the program. You can |
| to afford the new modified mortgage payment, now | | | | also call your lender and ask to be considered. Even if |
| and in the future. Your lender will ask for a financial | | | | you have applied before or been declined in the past, |
| statement that details your income and expenses, do | | | | you are entitled to be considered for this plan. Make |
| you know how to complete this correctly so that it | | | | sure you that are prepared ahead of time so that |
| meets the approval criteria? | | | | you will be able to complete the application |
| 3. You must live in the home as your primary | | | | paperwork correctly. Remember, you must be able |
| residence to qualify for the Obama Home Affordable | | | | to demonstrate that you meet the eligibility |
| plan. Your loan must have been originated prior to | | | | requirements. |