Information On HAMP Loan Modification

The US government loan modification program has been quite effective for the homeowners who have not completed their mortgage payments. It is because such homeowners feel insecure in paying the loan mortgage amount as they are in financial scruples. In order to qualify under the HAMP, it is very necessary that the homeowner is staying in his/her primary home. The mortgage payments to be modified should be your primary residence and not secondary condo.

Another significantly important criterion to know here is that the current mortgage re payment of the homeowner should exceed 31% of his/her pretax gross monthly income. The eligibility conditions under the home affordable modification plan also say that the total loan amount of the homeowner should not exceed $729,750. The homeowner should also present before the mortgage lender that he/she is not able to make the current repayments. Those homeowners who become eligible for the modification of loan under the home affordable program will receive the cash incentive of $5000 credit for reducing the principal debt on their first mortgage. This is only possible, if the homeowners can continue to make the payments on time for a period of five successive years.

Property market in the US is undergoing through a bad phase as many of the homeowners have not been able to pay the mortgage loans completely. Still there are many homeowners who have defaulted. Under the US federal government, home affordable program was devised to make the mortgage terms simpler for the homeowners so that they can easily repay the loan smoothly. The repayment terms have been designed for the homeowner, and their monthly repayments are reduced to 31% of the pre tax income. HAMP has brought good news for the struggling homeowners so that they can lead a life free of worries. For the homeowners, it is very important that they have the understanding about the guidelines listed under HAMP program. Do not just follow what your lender says to you. After all, it is your home and you are concerned fro it than your lender.

Federal National Mortgage Association (FNMA) or Fannie Mae have clearly mentioned that the mortgage loan servicer's have to participate in the HAMP loan modification if the servicer's have received the funds from the government as the part of special monetary stability plan. Obama administration has already set forth $75 billion in case any loss is suffered by the lender as the part of this loan process. Get ready in 2011 with information on hamp loan modification to avail home affordable modification program.