| Trying to find a solution to unaffordable mortgage | | | | How do you get a Loan Modification? |
| payments? Think you might even lose your home | | | | |
| because you are behind on your loan payments? | | | | 1. Contact your lender and ask to be considered for |
| What about a loan modification that lowers your | | | | HAMP or any other loan workout program they have |
| monthly payments and gives you an interest rate as | | | | 2. Prepare a financial statement that demonstrates |
| low as 2%? Now that could be the solution you need. | | | | your current financial hardship situation, but that also |
| There are government subsidized programs being | | | | proves you will be able to afford to pay and maintain |
| offered to homeowners by banks so that | | | | the new modified payment if approved. It is critical to |
| foreclosure can be avoided and neighborhoods can | | | | meet the basic formula for approval, you can use a |
| be stabilized. Learn the why and how of how you | | | | software program that does all the debt ratio, target |
| can be approved for a loan modification. | | | | payment, disposable income, and other calculations |
| The government program is called HAMP, this stands | | | | automatically and avoid mistakes. |
| for Home Affordable Modification Plan. Funded by $75 | | | | 3. Submit your accurate and acceptable loan |
| billion dollars in stimulus funds, banks are being | | | | modification application, then follow up with your |
| encouraged and actually paid by the Treasury | | | | lender at least once a week to make certain your |
| Department to offer lower loan terms to those | | | | application is moving ahead to approval. |
| homeowners who can meet the basic approval | | | | Really, it's not a mystery why and how almost a |
| requirements. Here is a checklist of important things | | | | million homeowners have already been helped under |
| you need to know about this home saving option: | | | | the HAMP loan workout program. There is a basic |
| Why a Loan Modification? | | | | formula that the Treasury Department has |
| | | | implemented and each lender uses this formula. Use a |
| 1. Your mortgage payment is no longer affordable | | | | software program that mimics this same formula |
| due to a financial hardship situation-loss of income, | | | | when you prepare your financial statement and you |
| increased expenses, resorting to using your savings | | | | will be certain that your budget fits into the approval |
| to pay bills | | | | guidelines. And you will know ahead of time if you |
| 2. Your home has lost so much value that you | | | | might need to make some minor adjustments to |
| cannot qualify for a refinance into a more affordable | | | | your budget-before your lender has a chance to |
| mortgage | | | | decline your application. Do it right the first time and |
| 3. You have an adjustable rate loan that is due to | | | | get back on the road to secure home ownership. |
| reset soon | | | | |