| Homeowners who know the Home Affordable | | | | 7. Approved borrowers will be given a 3 month trial |
| Modification program and how to apply correctly will | | | | modification, upon completion of that, the |
| now be able to receive their answer within just 30 | | | | modification will be made permanent. No more |
| days of sending in their application. The Fed has | | | | reapplying or updating information required. |
| instituted a procedure so that struggling borrowers | | | | 8. Ineligible borrowers may be offered another |
| can actually get their loan modification completed | | | | program-HAFA-Home Affordable Foreclosure |
| within a short period of time-as long as they know | | | | Alternative, a streamlined short sale process that |
| and follow this procedure: | | | | allows a $3000 transition fee be paid to the |
| Home Affordable Modification Plan Procedure | | | | homeowner. |
| Here is the step by step procedure for homeowners | | | | You can see that the new procedure rewards |
| to follow that will ensure a quick response from your | | | | homeowners who know how to complete the |
| bank: | | | | package correctly by providing a prompt answer to |
| | | | their HAMP request. The secret to getting back on |
| 1. Contact your bank and request consideration for | | | | track with a low mortgage payment is to prepare |
| HAMP-Home Affordable Modification Program | | | | your financial statement correctly and send in |
| 2. Your request will be acknowledged within 10 days | | | | everything the bank needs the first time. Ideally, |
| and a package sent to you | | | | within just 120 days your loan could be |
| 3. Prepare the application correctly and accurately so | | | | PERMANENTLY modified with just one application. |
| that you clearly demonstrate that you fit into the | | | | In order to qualify for a mortgage modification under |
| approval guidelines | | | | HAMP you must be able to meet debt ratio, target |
| 4. Send the application back to your lender along with | | | | payment and other calculations using a standard |
| all of the other documents they request-pay check | | | | approval formula. If you are not sure how to figure |
| stubs, hardship letter, etc. | | | | your debt ratio or are uncertain about how to |
| 5. Your application will be reviewed to make sure that | | | | prepare you financial statement you may want to |
| everything is there-if not a Notice of Incomplete | | | | use a software program designed just to help |
| Documentation will be sent out | | | | homeowners. This software program will do all of the |
| 6. Within 30 days of receiving a complete, accurate | | | | calculation for you and let you know ahead of time if |
| and acceptable package the homeowner will be | | | | you need to make any adjustments to your figures |
| notified if they qualify or not. | | | | before your lender reviews it. |