Techs: Terms and Conditions For HAMP Approval – Techs.nbs24.org – techs reviews, specifications, news and more…

 

Techs: Terms and Conditions For HAMP Approval

Techs: Terms and Conditions For HAMP Approval

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The loan modification programs have been introduced by the US government to help the struggling homeowners who are facing the risk of foreclosure. The Obama administration has funded $75 billion which is a positive action from the government to put a barrier on home meltdown and financial crisis. Loan modification has helped many of the homeowners who are behind their mortgage payments from losing their home. There are certain rules or criteria for a person to qualify for the Obama HAMP. If these basic rules are satisfied, the homeowners are qualified for a loan modification and prevent foreclosure.

The basic criteria of HAMP is that the loan amount should not exceed $729,750. People who have taken more loan amount are not qualified under the Home Affordable Modification Program. The next important criteria is that homeowners should be currently staying in their primary home and not in a rented apartment or condominium. The mortgage should be associated with the primary residence of the homeowner.

The homeowner should present before the mortgage company that he is not able to make the payments at present. It is also necessary that the current mortgage re-payment amount should be more than 31% of the homeowners pretax monthly income. The homeowners should also be able to make payments within the first 5 years after the modification is made. If these criteria are satisfied, the homeowners will be eligible for the loan modification under the Home Affordable Modification Program. The eligible house owners will be credited $5000 to reduce their principal debt on their mortgage.

The Obama HAMP program has bought good news to the homeowners as well as the mortgage lenders, both of them benefit from the modification process as the homeowners can prevent the foreclosure and can make affordable mortgage payments whereas the lender gets their money back. This is the most wise approach to avoid foreclosure, where both the mortgagee and the lender suffers. The Home Affordable Modification Program will help the property market in the US regain its strength.

Source by Jaison Joseph Thekkekara

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