| Many homeowners stuck with unaffordable mortgage | | | | also included in The Complete Loan Modification Guide |
| payments could possibly be eligible for a federal plan | | | | kit. This application includes a monthly budget which |
| that offers to reduce their monthly payments and | | | | details the income and expenses of the homeowner |
| help them to avoid foreclosure. The federal mortgage | | | | and this information will determine if the borrower |
| loan workout program is called HAMP-for Home | | | | qualifies for HAMP. |
| Affordable Modification Plan. This home retention | | | | 2. Provide a brief Hardship Letter, this is an |
| program is funded by $75 billion in stimulus funds and | | | | explanation of what has happened to make the |
| is only available for a limited period until the funds run | | | | mortgage payment unaffordable and confirms that |
| out or the program reaches it's end date. | | | | the borrower is facing a financial hardship situation. |
| Homeowners need to apply now for a mortgage loan | | | | 3. Provide proof of income-paycheck stubs, award |
| modification request in order to take advantage of | | | | letters, P & L for self employed borrowers. |
| this government bailout. There is a standard process | | | | 4. Provided a signed 4506T form-available in The |
| to submit an application for HAMP, and there are | | | | Complete Loan Modification Guide kit. |
| standard approval guidelines in place to determine | | | | Once the homeowner sends in a complete and |
| which homeowners will be eligible for government | | | | accurate HAMP request for loan modification, the |
| assistance. Borrowers need to prepare and submit | | | | information will be reviewed and a decision will be |
| certain forms and prove that they meet the approval | | | | made to determine if the borrower fits the |
| guidelines. | | | | government approval criteria. There is a 4 step |
| Mortgage Loan Modification Request-HAMP Checklist: | | | | formula that is used to qualify, so homeowners need |
| | | | to understand the basic approval guidelines in order |
| 1. Complete the application form called RMA. This | | | | to have the best chance for success. |
| form is available on the government website and is | | | | |