Loan Modification programs available for homeowners

Loan Modification Programs

Home Affordable Modification Program (HAMP)

HAMP is the program that the majority of homeowners will be eligible for.

If you are having a tough time making your mortgage payment for other reasons besides unemployment, you may qualify for HAMP. HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly household gross income to make your payments more affordable. Typically, the HAMP modification results in a 40 percent drop in a monthly mortgage payment.  So far, Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.

Eligibility

You may be eligible if you meet all of the following criteria:

  • the home is for your primary residence
  • You obtained your mortgage  before January 2, 2009
  • Your mortgage payment is more than 31 percent of your monthly gross income
  • You owe less than $729,751 on your home
  • You are in danger of falling behind on your mortgage and you have a financial hardship
  • You can verify your income to support the modified payment
  • You can’t have a conviction within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

Principal Reduction Alternative (PRA)

PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.

Eligibility

You may be eligible for PRA if you meet the following criteria:

  • Your mortgage can’t be owned or guaranteed by Fannie Mae or Freddie Mac.
  • Your home has negative equity, you owe more on it than it is worth, or your home is upside down
  • the home is for your primary residence
  • You obtained your mortgage before January 2, 2009.
  • Your mortgage payment is more than 31 percent of your gross monthly household income
  • You owe less than $729,751 on your home
  • You are in danger of falling behind on your mortgage and you have a financial hardship
  • You can verify your income to support the modified payment
  • You can’t have a conviction within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

Second Lien Modification Program (2MP)

The 2MP program is for people who were able to get their first mortgage modified through HAMP.  2MP is designed to work with HAMP to increase long-term affordability and sustainability for homeowners.  If you servicer is participating in  2MP, after your first mortgage is modified they will automatically evaluate your 2nd mortgage.

Eligibility

You may be eligible to apply if you meet all of the following criteria:

  • Your first mortgage was modified under the Home Affordable Modification Program.
  • You can’t have a conviction within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
  • You have not missed three consecutive monthly payments on your HAMP modification.
  • Your second mortgage balance is greater than $5,000.
  • Your current monthly second mortgage payment must be greater than $100.

FHA Home Affordable Modification Program (FHA-HAMP)

This program is for people with a Federal Housing Administration (FHA) loan.Page Content  The FHA Home Affordable Modification Program (FHA-HAMP) is a program for struggling homeowners that works to lower your monthly mortgage payment to 31 percent of your verified monthly household gross income to make your payments more affordable.

USDA’s RHS Special Loan Servicing

If you have a loan that is insured or guaranteed by United Stated Department of Agriculture (USDA), you may be eligible for their modification program.  The United Stated Department of Agriculture (USDA) modification program, strives to help struggling homeowners reduce their mortgage payments to 31 percent of their monthly gross household income.

Veteran’s Administration Home Affordable Modification (VA-HAMP)

If you have a loan that is insured or guaranteed by the Department of Veterans Affairs (VA), you may be eligible for their modification program. FHA, VA and USDA all offer programs for struggling homeowners with the sole purpose of reaching a new modified monthly mortgage payment of 31 percent of your verified monthly gross household income.

Be Sociable, Share!

Leave a Reply

*