Seek loan modification help for your FHA mortgage
The downturn in US economy post 2008 has had disastrous effect on millions of Americans with a significant number of them facing foreclosures or bankruptcies. The Obama administration launched the federal loan modification program also known as Obama loan modification program.
This initiative was started to help American homeowners on the brink of foreclosures and bankruptcies to save their homes. Also, this aimed to stabilize the real estate valuations of the neighborhoods that saw these foreclosures damaging the real estate industry and the overall American economy, irreversibly.
This loan modification is very similar to refinancing the home loan which tends to aim at reducing the monthly installments to affordable and feasible levels. The main difference being refinancing requires you to take a new loan and loan modification works by adjusting the existing terms and condition of your current loan. Eg. By lowering the interest rate or increasing the tenure of repayment of the loan.
When the Obama loan modification initiative was started it was initially launched for the customers of Freddie Mac and Fannie Mae only. But effective from August 2009 FHA borrowers can also take advantage of the FHA mortgage modification initiative and save their homes.
Eligibility for FHA loan modification:
Listed below are the FHA loan modification requirements for borrowers willing to qualify for the same:
- The property under threat of foreclosure must be the primary residence of the borrower and not an investment option.
- The property under threat of foreclosure should be your only home.
- The mortgages need to be at least insured if not owned by Freddie Mac or Fannie Mae.
- The borrower should have paid the mortgages for the last twelve months without a default that exceeded more than thirty days.
- In case there were any monthly mortgage payments that were missed they should not be intentional in nature.
- In case of HAMP mortgage a new mortgager could be added to current mortgager.
- The owner should have owned the property in question for at least a year and have made at least made four of the mortgage installments within due time.
- In case the ownership of residence is through the death or from divorce of the original owner, it should be backed by proper documented proof.
- As mandatory by HAMP loan modification regulations the total housing cost including the mortgage payment, taxes and HOA fees should be more than thirty one percent of gross monthly income of the home owner.
Other banks have also started providing services through HAMP to its existing customers. Bank of America loan modification program is one such as instance that is largely perceived to be a successful initiative.
The loan modification process requires filling up of lot complicated forms and adhering to a lot of regulations which may be a tough task on the part of the home owner who is fighting to save his home from a foreclosure. Hence, it is advisable that he takes Loan modification help from a loan modification attorney specializing in HAMP cases. They will not only help in filling up those forms and guide you where necessary but also deal with banks and lending authorities is getting your loan modified to best possible extent so that you are able to make future mortgages conveniently. Such loan modification attorney can be hired through a lot of internet websites.
The author of this article Kevin Riley is an expert on Loan Modification and FHA Refinance has written many articles on topics: Obama loan modification program; Bank of America loan modification etc. on the popular US
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