Home Affordable modification program prevents foreclosure activity for the Charleston homeowners.
webuycharlestonschouses.com. The home affordable mortgage program (HAMP) is considered to be a viable option for preventing foreclosure activities to help the Charleston homeowners who’re unable to afford their monthly mortgage payments.
Under this program, the mortgage providers modify the loan terms by lowering the interest rate or take other necessary steps to make the owed amount affordable for them. In most of the cases, the homeowners do not pay more than 31% of their monthly household income for their modified loan payments.
As a matter of fact, the HAMP is monitored by the government, but you need to qualify as well as negotiate with your loan provider. Before applying for the home affordable mortgage modification program, you’re required to know about it in detail.
The government pay a fee to the the mortgage providers for each loan they modify. In fact, the government shares the cost of reducing the monthly payment. In this situation, the loan providers as well as the borrowers receive monetary incentives from the government when the borrowers make timely payments.
The Home Affordable Modification Programs are free for the Charleston Homeowners as the costs are shared by the government and loan providers.
Are you eligible for Home Affordable Modification Program?
Here are the qualification criteria that can help you understand whether or not you’re eligible for Home Affordable Modification Program (HAMP):
1. You’re required to live in your home as the primary residence or rent your home for the whole year. However, you home can be single-family or multi family when you enroll for a Home Affordable Modification Program.
2. The owed amount is within $729,750 on your first mortgage for a single-family. But the owed amount limit is higher for multi-family homes.
3. You can qualify for this program if you’ve enough verified income to afford modified mortgage payment.
4. Your loan may not be affordable because of financial hardship and you may fail to have adequate liquid assets to make your payment on time. Well, the financial hardship can be job loss, decrease in income or increase in expenses, a surge in the mortgage payment or other financial hardship. If you can provide evidence for financial hardship, then you can qualify for the program.
5. You’re eligible for the HAMP if you got your current loan before January 1, 2009.
6. The loan providers are required to participate in the program but they’ve to accept the bailout money from the US Treasury. Most of the lenders are expected to take part in the program because of the financial incentives they’ll receive from the government.
You’re not required to be behind on your mortgage payment in order to qualify for a modification. This program is designed for the homeowners who’re on the verge of defaulting on payment. If you’re about to face foreclosure on your property, then the foreclosure process can be on halt as long as the lender checks your HAMP eligibility.
What are the benefits of Home Affordable Modification?
Here are some of the benefits of Home Affordable Modification for the homeowners in Charleston:
1. You can get modified loan and your mortgage payment can be affordable each month. Your payment is inclusive of the principal as well as the interest, real estate taxes, insurance and homeowner fees.
2. You can make your monthly payment affordable if the mortgage provider lowers the interest rate to as low as 2%.
3. The lender may extend the life of the loan to 40 years if lowering the interest rate is not satisfactory enough to make your payment affordable. In certain cases, the lender may defer a portion of your payment without interest on the loan or forgive a portion of the debt.
4. You get a three months trial period and the lender may check whether or not you’re capable of making your new payment on time.
Therefore, you consider HAMP if you’re unable to make mortgage payment on time and the lenders can foreclose on your property.
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