Quickly Determine Your Eligibility For The Obama Loan Modification Programs
The Obama loan modification programs are designed to assist borrowers who have been struggling to pay their high interest rate monthly mortgage payments. But to get an approval for the home affordable modification plan or the HAMP, as it is popularly known, it could be important for an applicant to fill out the application correctly.
To provide financial assistance to distressed homeowners, the Obama loan modification programs use a standard set of guidelines for determining eligibility of prospective applicants. Therefore, if you have some prior knowledge about these qualification requirements, you could be in a position to get pre-qualified for the government plan. Here is some crucial information regarding the same which you may find useful; in your effort to get an early HAMP approval.
The HAMP offers another variant in the form of home affordable unemployment program (HAUP) for borrowers who are facing a financial hardship situation and have lost their jobs. In any case, when you are out to apply for the Home Affordable Modification Program, the most critical aspect is your new target payment. Lenders use a standard formula, which is as per the Treasury Department procedure and guidelines, to calculate this. This ultimately helps the lender to know if you can qualify for the HAMP plan. Typically, the target payment is your new monthly mortgage payment which is less than 31% of your gross monthly income. While calculating the same, lenders take into account unpaid principal loan balances and interests, property taxes, homeowner’s insurance charges as well as any other dues. And you could quickly find out your own new target payment by using the below mentioned formula.
- Gross monthly income for a household (inclusive of any taxes or deductions) multiplied by 31% = your new target payment.
- Target payment minus (property taxes + homeowner’s insurance + homeowner’s dues) = Your principal and interest target payment.
As per Obama loan modification guidelines, once you have determined the new target payment, you could use standard methods for getting your existing home mortgages modified under the HAMP program. Even lenders would be using the same formula for determining the eligibility of every loan modification applicant. Therefore, if you learn the method of target payment calculation, you would be able to pre-qualify for HAMP and in case there is any problem, you could make vital adjustments in your financial statement which you would be submitting along with your home loan modification application. If you are still confused on what is being said, it could be important for you to take advantage of expert help that is available online at your disposal. This could enable you to provide correct and accurate documentation which is the key to getting quickly approved for the HAMP home mortgage modification plan.
To get more vital information on the requirements for Home Affordable Modification Program or Bank of America loan modification qualifications, it’s highly recommended to use the professional services offered by reputed online service providers like Obamaloanmodification.
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