Working With Mortgage Modification Companies
If you are one of the many people in todays economy who are facing foreclosure, you need to know there are options. Working with one of the many loan modification companies will allow you to reduce the payments on your home without having to refinance. You can choose either a private or government sponsored program.
Choosing Between Private Modification and HAMP
If you are seeking home loan modification you have two options open to you: private home loan modification or government sponsored modification (HAMP). There are some differences between the two programs with the HAMP government program offering a better option for most people. Some of the provisions of the HAMP (Home Affordable Modification Program) that can help you maintain ownership of your home include the following:
Payments cannot exceed 31% of the homeowners income
Lender must lower the interest rate to as minimal as two percent in order to meet the requirement of income to payment ratio
Lenders may also be required to extend the term of the loan to up to 40 years (or more) in order to meet the income to payment ratio
All costs are incorporated into the total amount of the loan
Of course, this doesnt mean everyone who applies for HAMP will be approved. The homeowner must prove he or she is able to make the modified payments, and the lender must be able to prove his income will be higher after modification. For more information on HAMP and private home modification programs visit mortgage modification companies.
Purpose of Obama Home Modification
With so many people losing their homes, the president saw the need for a program that would help people save their homes. The birth of the Obama Home Affordable Modification Program was developed on the premise of helping people who were in financial crisis from losing their homes. While for the most part the program has been successful, there are drawbacks. Some homeowners do not qualify, for example, while a good many still end up in foreclosure within a year.
Where to Obtain Home Mortgage Modification Assistance
Click Here To Get More Info About Loan Modification Program
The most logical place to look when you are seeking a lender for loan modification is your current lender. However, you must keep in mind that not all mortgage companies participate in modification programs, and only those that participate in federal mortgage programs such as VA, FHA, etc. are required to participate in HAMP. However, your current lender is able to provide the information you need to locate a participating lender.
The Obama Home Affordable Modification Program provides assistance for many homeowners who are in danger of losing their homes in foreclosure. The HAMP government program was designed to provide assistance to many people who were struggling with their mortgage payments because of the depressed economy that has left so many out of work or working for less money than their budget supports. The economy has created the need for many mortgage modification companies but there are likely to be many more needed to provide home mortgage modification assistance.
About the Author: Christy OConnor is the founder of a professional website that provides free phone consultations with attorneys and financial experts. To get your consultation with an expert on home mortgage modification assistance, go to her site at credit-yogi.com
Choosing Between Private Modification and HAMP
If you are seeking home loan modification you have two options open to you: private home loan modification or government sponsored modification (HAMP). There are some differences between the two programs with the HAMP government program offering a better option for most people. Some of the provisions of the HAMP (Home Affordable Modification Program) that can help you maintain ownership of your home include the following:
Payments cannot exceed 31% of the homeowners income
Lender must lower the interest rate to as minimal as two percent in order to meet the requirement of income to payment ratio
Lenders may also be required to extend the term of the loan to up to 40 years (or more) in order to meet the income to payment ratio
All costs are incorporated into the total amount of the loan
Of course, this doesnt mean everyone who applies for HAMP will be approved. The homeowner must prove he or she is able to make the modified payments, and the lender must be able to prove his income will be higher after modification. For more information on HAMP and private home modification programs visit mortgage modification companies.
Purpose of Obama Home Modification
With so many people losing their homes, the president saw the need for a program that would help people save their homes. The birth of the Obama Home Affordable Modification Program was developed on the premise of helping people who were in financial crisis from losing their homes. While for the most part the program has been successful, there are drawbacks. Some homeowners do not qualify, for example, while a good many still end up in foreclosure within a year.
Where to Obtain Home Mortgage Modification Assistance
Click Here To Get More Info About Loan Modification Program
The most logical place to look when you are seeking a lender for loan modification is your current lender. However, you must keep in mind that not all mortgage companies participate in modification programs, and only those that participate in federal mortgage programs such as VA, FHA, etc. are required to participate in HAMP. However, your current lender is able to provide the information you need to locate a participating lender.
The Obama Home Affordable Modification Program provides assistance for many homeowners who are in danger of losing their homes in foreclosure. The HAMP government program was designed to provide assistance to many people who were struggling with their mortgage payments because of the depressed economy that has left so many out of work or working for less money than their budget supports. The economy has created the need for many mortgage modification companies but there are likely to be many more needed to provide home mortgage modification assistance.
About the Author: Christy OConnor is the founder of a professional website that provides free phone consultations with attorneys and financial experts. To get your consultation with an expert on home mortgage modification assistance, go to her site at credit-yogi.com
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