Search This Site




follow me on twitter subscribe to feed

Q: How does the trial loan modification work?

Question: How does the HAMP trial loan modification work?

Answer: The goal of the Making Homes Affordable Program is to bring your total housing payment down to 31 percent of the gross household income.

Your lender will give you a trial period of at least 90 days to see if you can make the new payment on time before making the home loan modification permanent.

Here are someĀ guidelines to qualify for a trial loan modification:

  • Total housing payment includes principal, interest, taxes, insurance and association dues, if applicable. It would also include private mortgage insurance if it is a part of your current mortgage payment.
  • You must have verifiable income in order to qualify for assistance through this program.

Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps of fighting to get the best terms on your loan modification.

Click here to get proven help with your home loan modification

  • All eligible loans will enter into a 90-day trial period.
  • You will be required to submit updated income documents at the time the trial modification is offered.
  • If you comply with the terms of your trial modification and the income is appropriately verified, you should receive a permanent modification to your mortgage.

The new payment will be achieved through the use of three options in the following order:

1) The first method to reduce your total housing payment down to 31% is to reduce the interest rate;

2) If the payment is still too high, the next method will be to extend the mortgage amortization period to a maximum of 40 years from the date of modification;

3) The last method to further reduce your payment to meet the requirement is the forbearance of principal creating a balloon payment at maturity.

Source: http://www.naplesnews.com/news/2009/nov/04/understanding-loan-modification-and-making-homes-a/

Homeowners – Need Some Sound Advice?

Get Out of Debt Workbook
Seasoned debt expert shares several little known but highly effective techniques guaranteed to get you out of debt fast – no matter how much you currently owe.
Stop Foreclosure
Get more help on fighting to stop a foreclosure with one of 7 options. For example, if a loan modification is not an option learn about a little-known government program that will stop a foreclosure in less than a day without an expensive attorney.

Also get the latest foreclosure news around the country, read Q&As and other resources.

Legally Restore Your Credit
If you are visiting this blog, you likely have mortgage lates, which are a big blemish on your credit report. Once you resolve your mortgage situation, you can legally remove those mortgage lates and all derogatory credit from your report without having to hire an expensive attorney or credit repair service.

home loan modification, loan modification, mortgage loan modification, loan modification program

Technorati Tags: home loan modification, loan modification, mortgage loan modification, loan modification program

Related posts:

  1. Q: How does the trial loan modification program work?
  2. Q: How do loan modifications work?

Tags: hamp government program rules, hamp program guidelines

Comments are closed.

Bad Behavior has blocked 533 access attempts in the last 7 days.

Switch to our mobile site