Few Key Facets Of Obama’s Home Loan Modification Program
It might not be that easy for you to get the Obama loan modification approval in the absence of any proper information about the process. Therefore, if you are out to apply for the home affordable modification program or HAMP, as it is popularly known, it could be important for you to have a thorough understanding of the Home Affordable Modification Program procedure and the benefits which it could provide you.
To derive the benefits of the Obama loan modification programs, borrowers need to have a complete knowledge of the HAMP loan modification process. Here is some vital information regarding the same which might serve as a useful guide to prospective HAMP home mortgage modification applicants.
- When you get the Obama loan modification approval your lender would offer you a trial loan modification. Unless this trial phase gets over successfully, the federal government would not provide any incentives to either the mortgage servicer or you. Furthermore, if there is a default in paying the modified monthly payments during the trial period, you could be offered a foreclosure short-sale option under the home affordable foreclosure alternatives or HAFA.
- Typically, the HAMP trial home loan modification would be in effect for duration of 3 months or 90 days. The lender may extend this period for fulfilling the contractual obligations. In any case, the borrower is required to stay current in paying the modified monthly installments.
- Lenders need to ascertain that that the debtor’s modified monthly mortgage payments are inclusive of homeowner’s insurance fees and property taxes. If unable to escrow these, servicers need to do it within 6 months of signing the HAMP loan modification plan agreement.
- The HAMP rules and regulations are quite complex to understand. Only competent loan modification lawyers who are well versed with the HAMP eligibility and process requirements could help you know these. For example, under government guidelines, lenders are required to clearly inform debtors in writing, who have a back-end DTI of 55% or more, about the advantages as well as affordability of counseling services provided by a HUD approved credit counselor. The loan modification would not be effective till the debtor agrees to avail counseling facilities.
- After getting Obama loan modification approval, borrowers are not required to pay any fees towards loan modification application processing, property evaluation, notary fees or such other charges. The mortgage servicer would reimburse the same as the federal government would provide money for covering up the costs.
- In any case, all unpaid late fees that exist before and even during trial loan modification period would get automatically waived off if you qualify for the HAMP. In addition, your lender would even pay for the costs involved in getting your credit reports verified.
- If a particular modified home mortgage loan has been assumable prior to granting an approval, the Domestic Economic Modification laws would nullify its effects.
To get more useful information on the Home Affordable Modification Plan and loan modification eligibility and process requirements, it’s strongly recommended to use the services of trusted online service providers like Obamaloanmodification.
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