In my last post I discussed the HAFA program which is the US Treasury short sale program. HAFA is an outgrowth of the HAMP program which was the US Treasury response to the mortgage crisis during the financial meltdown.
I suppose I put the cart before the horse because I didn't really go into much detail about the HAMP Loan Modification program. That's probably because the HAMP program has been considered a dismal failure by many real estate agents - not entirely without justification!
Nevertheless, the HAMP program has worked for some Punta Gorda - Port Charlotte - North Port home-owners, and we'd be derelict in our duty as real estate agents if we ddin't explore all the options available to distressed home-owners. It seems as if many agents just abandoned these poor souls to the 'Foreclosure Rescue' sharks out there. These are the indivduals and organizations that attempt to sell loan mods to financially distressed folk for a couple of grand! Talk about kicking them when they're down.
So, in the interest of full disclosure - I absolutely believe Short Sales are the best way for a severely 'upside-down' mortgage holder to avoid a foreclosure - here are some specifics about the HAMP Loan Modification program:
If you are one of the many Punta Gorda - Port Charlotte - North Port home-owners who can no longer afford to make their monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of mortgage holders who may be current, but are having difficulty making their loan payments and borrowers who have already missed one or more payments may be eligible.
These are the criteria that banks will apply to see if you qualify for a HAMP Loan Modification.
- Is your Punta Gorda - Port Charlotte - North Port home your primary residence?
- Is the amount you owe on your first mortgage equal to or less than $729,750?
- Are you having trouble paying your mortgage? For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (divorce or medical expense)?
- Did you get your current mortgage before January 1, 2009?
- Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?
A Loan Modification is absolutely an option worth exploring, if only to put your mind at ease that you did everything possible to save your home from foreclosure. Just bear in mind that a Loan Modification is NOT the only way to address the problem. Short Sales are a sensible way to solve the problem of the upside down mortgage. And HAMP also has a Deed-in-Lieu program which offers homeowners a (fairly) graceful exit should neither a loan mod or a short sale solve your problem.
For a comprehensive discussion of the ways to find relief from a toxic mortgage without the indignity of foreclosure, we invite Punta Gorda - Port Charlotte - North Port homeowners to visit our Mortgage Relief Information site.
Comments(0)