The HAMP program, or Home Affordable Modification Program is a new government backed program that allows a homeowner to modify their mortgage much easier than in the past. Once all documentation is provided to your bank, you will be given a response from your bank within two weeks. In the past, as many of us are aware, it has taken months to get a response only to find out that we were not approved for a loan modification. The qualifications for a loan modification under the HAMP program are also a lot clearer than what you may have experienced or heard about in the past. Qualifications:
- You are living in the property and it is your primary residence
- You owe less than $729,750 on your mortgage
- You have a financial hardship
- You acquired your loan prior to January 1st 2009
- Your mortgage is greater than 31% of your gross income
Please keep in mind that the decision to provide you with a loan modification still belongs to your lender. However, the new program incentivizes your bank to work with you to modify your loan and keep you in your home. You may also be subject to lender guidelines, however, the bank has to give you a response within 2 weeks once you have applied for a loan modification under the HAMP program;
Don’t hesitate to contact us if you have any questions about Real Estate.
