HAMP Loan Modification Criteria

If you're a homeowner who is intent on saving your home from foreclosure, HAMP loan modification guidelines may be a phrase that you have come across. HAMP stands for Home Affordable Modification Program, a housing initiative started by the federal government with the stated intention of helping struggling homeowners in America to avoid foreclosure. Homeowners who are intent on participating in the HAMP program have to comply with a number of guidelines that apply it. The following are the criteria that are applicable:

Primary HAMP loan modification guidelines:

·         The borrower must be living in the property as the primary resident.

·         The home loan must have begun before to January 1^st, 2009.

·         The relevant loan payment should be lower than $729 dollars, $750 for a single unit residence.

·         The lender associated with the loan must be officially recognized by the United States Treasury Department.

·         The current loan payment must be more than 31% of the borrower's gross monthly income, including taxes, homeowners insurance and dues.

·         The applicable home loan can not be one that has been modified under the HAMP program before.

·         The loan must be delinquent, or the real possibility of default must be high. Homes that have already been foreclosed on may still be eligible.

·         For an owner-occupied, single-family property, the home loan must be backed by a one- to four-unit property, of which one is the borrower's primary place of residence.

·         The property securing the home loan can not be condemned or vacant.

·         The borrower needs to needs to make a strong case for facing financial hardship, and must show convincingly that the current available resources are not enough to cope with the existing mortgage payments.

·         The homeowner needs to agree to the creation of an escrow account (if one is not already in place) for taxes and hazard and flood insurance, before the trial modification period starts.

·         Outstanding principle amounts – The existing unpaid principle balance of the home loan before capitalization must not exceed $729,750 for a 1-unit, $934,200 for a 2-unit, $1,129,250 for a 3-unit, and $1,403,400 for a 4-unit property.

·         The borrower must pay a timely first trial period payment to the lender on or prior to December 31^st, 2012.

Apart from the main guidelines mentioned above, there are a number of secondary guidelines that are also associated with the HAMP program. For expert guidance with all the aspects of a HAMP loan modification, you need access to innovative loan modification software that aides you in putting together a comprehensive and accurate application package.

MyCaal loan modification help has been engineered to make it simple and affordable for you to obtain your loan modification approval. Through in-depth support, and an intuitive interface, MyCaal provides you with powerful information regarding your pre-qualification status, meaning that there's no need to submit your application in the dark. You'll know exactly what you're entitled to, and you'll have the grounds on which to communicate boldly with your lender. Visit Mycaal.com for more information.