| A mortgage modification under the federal Obama | | | | modification under HAMP are: |
| plan offers struggling homeowners interest rates as | | | | - Live in the home as your primary residence |
| low as 2% and terms up to 40 years long. The goal | | | | - Loan taken out prior to January 1, 2009 |
| is to achieve a new target mortgage payment that is | | | | - Loan amount less than $729,750 |
| affordable and sustainable. As the foreclosures | | | | - Current payment equals more than 31% of your |
| continue to increase, the national economic recovery | | | | gross monthly income |
| depends on stabilizing the housing market. This home | | | | Once you pass this initial screening, you will be asked |
| rescue plan is designed to keep borrowers in their | | | | to submit an application. This will include a hardship |
| homes and avoid foreclosure. Could this government | | | | letter explaining why your current payment is not |
| bailout plan help you? | | | | acceptable, a financial statement detailing your |
| Mortgage modifications under the federal HAMP | | | | income and expense each month, and proof of your |
| guidelines give borrowers the chance to obtain new | | | | income-tax returns, pay check stubs, bank |
| loan terms that are more affordable. There is a | | | | statements. Based on the information you provide, |
| standard method of determining who will qualify for | | | | your lender will determine if you qualify under that |
| this program and how the loans will be modified. The | | | | standard guidelines. You can use the very same |
| Treasury Department is kicking in billions of dollars to | | | | formula that your bank will use to prepare your own |
| encourage banks to help their borrowers-but only if | | | | accurate and acceptable financial statement. A |
| the homeowners meet the approval criteria set forth | | | | software program that mimics the federal guidelines |
| by the Fed. | | | | is available for homeowners and will take the guess |
| The guidelines for HAMP for published and all lenders | | | | work out of your calculations. You could qualify for a |
| who are participating have agreed to abide by the | | | | 2% interest rate and the mortgage payment you |
| criteria. Homeowners can increase their chance of | | | | can afford-spend a few hours learning what it takes |
| approval by learning how to qualify for a mortgage | | | | to get approved. |
| modification using the very same formula the banks | | | | A mortgage modification could be the answer that |
| will use. This just makes sense-if you prepare your | | | | you need so that you can afford to keep your |
| application so that it proves you are an acceptable | | | | family's home. HAMP is a government funded |
| candidate, then you have the best chance of | | | | program and it will expire-don't miss out on your fair |
| success. Just throw something together or call your | | | | share of the bailout billions. Your tax dollars are |
| lender before you are prepared and you are taking a | | | | funding this program, so make sure you are prepared |
| big chance. | | | | to take advantage of this federal home rescue plan. |
| The basic approval criteria for a mortgage | | | | |