| Nearly 5 million homeowners across the country are | | | | affordable payment. The loan terms under the bailout |
| at risk of losing their homes to foreclosure due to | | | | plan include: |
| unaffordable mortgage payments. President Obama's | | | | |
| bailout plan is designed to offer a loan modification | | | | 1. Interest rate reduced to as low as 2% |
| featuring low interest rates and a second chance for | | | | 2. Loan terms extended to 40 years |
| almost 5 million borrowers. The plan is called Home | | | | 3. Principal deferral or forgiveness |
| Affordable Modification or HAMP. What are the | | | | 4. New mortgage payment that equals just 31% of |
| details of this plan and just who will qualify for help? | | | | the gross monthly income The Fed is fed up with |
| This groundbreaking mortgage bailout plan is funded | | | | banks not offering loan modifications to borrowers, |
| by the Housing Stimulus Plan and is aimed at | | | | and are putting a lot of pressure on them to increase |
| modifying the terms of eligible homeowners so they | | | | the number of homeowners receiving a loan workout. |
| can afford to stay in their homes. The continued | | | | Even if you have applied and been turned down, you |
| increase in foreclosures across the country is causing | | | | need to work on your financial statement again-make |
| a downward pressure on housing values and | | | | any necessary adjustments and resubmit it. If you |
| preventing the economy from recovering quickly. | | | | prepare an accurate and acceptable loan modification |
| President Obama hopes HAMP will help stop the | | | | application that fits into the approval guidelines then |
| bleeding, and give hope and help to millions of | | | | you have a very good chance now of getting some |
| homeowners. | | | | type of loan workout. |
| Not everyone will qualify for mortgage bailout help, | | | | Lenders will use a standard 4 step formula to decide |
| and only those homeowners who can meet the | | | | if you qualify for HAMP. The good news is that you |
| eligibility guidelines will see their loan modification | | | | can use this very same formula to complete your |
| application approved. So, just who will qualify for the | | | | own application correctly. A software program |
| Federal Housing Stimulus loan workout or HAMP? | | | | designed just for homeowners will do all the |
| - You must live in the home as your primary | | | | calculations for you-debt ratio, new target payment, |
| residence | | | | disposable income, and more are all calculated |
| - Your loan must have been originated before | | | | automatically to help you avoid mistakes. The Loan |
| January 1, 2009 | | | | Mod Quick App is easy to use and is a great tool for |
| - Your loan amount cannot be greater than $729,750 | | | | homeowners that will save you hours of time and |
| - You must be facing a financial hardship situation | | | | give you the formula for a much better chance at |
| - Your current mortgage payment must equal more | | | | approval. |
| than 31% of your gross monthly income If you can | | | | The key to approval under HAMP is being able to |
| answer yes to those guidelines, then you are a good | | | | prepare a complete and accurate loan modification |
| candidate for a loan modification under this mortgage | | | | application that meets the program guidelines. |
| bailout plan. So, what is the first step? Interested | | | | Successful homeowners will understand how to |
| homeowners will be required to complete an | | | | adjust their financial statements and fine tune their |
| application, provide certain documentation and be | | | | application before contacting their lender to apply. |
| given a telephone interview by their lender. Those | | | | You are only allowed one chance for this program-be |
| homeowners who can prove in black and white that | | | | sure you learn and prepare before giving your lender |
| they meet the approval guidelines will be offered | | | | your information. |
| modified loan terms designed to give them an | | | | |