Feel like you are painted into a corner and running out of out of options because of high mortgage payments? Wait, you may be able to end the stress and frustration by qualifying for a HAMP loan modification using Obama's federal loan modification plan. The benefits of this government funded loan workout include reduced interest rates, longer loan terms and even principal reductions for homeowners who can meet the eligibility requirements. Here are some details of the plan and how you can apply.
The Treasury Department has approved banks to offer loan modifications using the federal plan called, Home Affordable Modification Plan- or HAMP. In return for adhering the to standard guidelines, lenders will be paid for each loan workout they complete for qualified borrowers. Homeowners will also be eligible for bonus payments of $1000 a year for 5 years-as long as they keep the modified payments current.
What are the benefits of this HAMP Loan Services loan modification? The ultimate goal is to achieve a target payment that equals just 31% of the borrowers gross monthly income. The methods used to attain this payment are the same for everyone, and are implemented using a waterfall method. This means that first the interest rate is reduced (to as low as 2%), if more changes are needed to hit the target payment, then the next option is to extend the loan term up to 40 years. If still more is required to reach that 31% target, then the lender may defer or forgive part of the principal balance. Aurora will be paid by the Treasury Department so that their losses caused by the new terms are shared with the government. There is a standard 4 step formula that is used to determine who will qualify for help. You can use the very same formula when you prepare your application to make sure you have the best chance of success.
President Obama is encouraging all homeowners facing financial hardship to contact their lender to find out if they could qualify for this federal loan modification plan. Borrowers will be asked some preliminary questions to determine if they meet the basic criteria. Once past this first step, homeowners will have to prepare an application that includes a detailed accounting of their monthly income and expenses, a hardship letter and proof on their income and assets. Based on the information provided by the borrower, the bank will make a decision to either grant the modification or not.
IMPORTANT APPLICATION TIP: Even deserving homeowners may be declined if they do not complete their application paperwork correctly. Do NOT contact Aurora until you have taken the time to learn the basics of how to prepare your financial statement and know the 3 critical elements you need to cover. It is not hard to do-but if you don't work on your forms ahead of time then you are taking a big chance at being denied the help you need. Take advantage of a software program designed just for homeowners that actually mimics the HAMP guidelines-simply input your own income and expenses and your debt ratio, new target payment, new interest rate and target payment are all figured automatically! You see immediately if you need to make any adjustments to your budget.
Lenders & servicers are offering the Home Affordable Modification to borrowers who can meet the approval requirements. Your job is to simply learn what those requirements are and then complete your application so that it has the best chance of meeting the criteria. Over 750,000 homeowners have already been approved under this government program and have had their mortgage payments reduced significantly. The secret to success is simply to learn, prepare, and then apply for help.
Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn't be easier-end the frustration-Visit myloanmodificationcenter.com and order today.
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