by What is Making Home Affordable?
Loan modification help is only a few seconds away! Read this article to find out more about the Obama Administration’s Making Home Affordable loan modification program and to see whether or not you qualify.
The Home Affordable Modification Program (HAMP) is the single best way to achieve a fixed rate loan modification that will significantly lower your monthly mortgage payments.
You do not have to be late on your mortgage to qualify under the Government Initiative, and your loan does not necessarily have to be held by Freddie Mac or Fannie Mae. Financial incentives are given to lenders that participate in modifying mortgage loans under the initiative, and to date hundreds of thousands of homeowners have saved their homes and avoided foreclosure through loan workouts.
Which Lenders Participate in Making Home Affordable?
If your loan is currently guaranteed by Fannie Mae or Freddie Mac, participation by your mortgage holder, or servicer, is mandatory, and if you qualify for a loan modification under the guidelines, they must approve it. Otherwise, lender participation is voluntary. Here’s an up to date list of which lenders participate in Making Home Affordable:
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1. American Home Mortgage Servicing, Inc. 2. Aurora Loan Services, LLC 3. Bank of America, N.A. 4. Bayview Loan Servicing, LLC 5. CCO Mortgage 6. Carrington Mortgage Services, LLC 7. CitiMortgage, Inc. 8. Citizens First Wholesale Mortgage Co. 9. Countrywide Home Loans Servicing LP 10. EMC Mortgage Corporation 11. Farmers State Bank 12. First Banks 13. First Federal Savings and Loan 14. GMAC Mortgage LLC 15. HomEq Servicing 16. Home Loan Services, Inc. 17. IBM Southeast Employees Federal Credit Union 18. J.P. Morgan Chase Bank, NA 19. Lake City Bank 20. Lake National Bank 21. Litton Loan Servicing |
22. Mission Federal Credit Union 23. MorEquity, Inc. 24. Mortgage Center, LLC 25. Oakland Municipal Credit Union 26. Ocwen Financial Corporation, Inc. 27. PennyMac Loan Services, LLC 28. PNC Bank, National Association 29. Purdue Employees Federal Credit Union 30. RG Mortgage Corporation 31. Residential Credit Solutions 32. Saxon Mortgage Services 33. Select Portfolio Servicing 34. Servis One Inc., dba BSI Financial Services, Inc. 35. ShoreBank 36. Technology Credit Union 37. Wachovia Mortgage, FSB 38. Wachovia Bank, NA 39. Wells Fargo Bank ,NA 40. Wescom Central Credit Union 41. Wilshire Credit Corporation |
What Are the Guidelines for Making Home Affordable?
You can qualify for a loan modification under Making Home Affordable if you meet the following guidelines:
1. Your home is your primary and only residence
2. The amount that you owe on your first mortgage is equal to or less than $729,750
3. You are having trouble making your monthly mortgage payments
4. You got your current mortgage before January 1, 2009
5. Your payment on your first mortgage (including principal, interest, taxes, insurance, HOA fees if applicable) is greater than 31% of your current gross income
What are the Benefits of Making Home Affordable?
Many borrowers say, ok, I want to save my home and lower my monthly mortgage payment as much as possible. How much money will I save if I get a loan modification through the Home Affordable Modification Program (HAMP)?
Under Making Home Affordable, your new monthly payment will be the maximum amount that you can afford under program guidelines. The target maximum amount for your monthly mortgage payment is based upon your “front end” DTI or Debt-to-Income Ratio. To calculate your new mortgage payment and to determine how much money you will save, multiply your gross monthly income by 31%.
For qualification purposes, do not include any payments on your second mortgage. Make sure to account for taxes and insurance by dividing the yearly or quarterly amounts to monthly figures. If you are currently escrowed, make sure to account for your Taxes and Insurance only once.
HAMP expires on December 31,2012. Your trial loan modification must be in place prior to this date in order to get a loan modification through MHA.
If you are in need of loan modification help, or your lender is being uncooperative in helping you get a mortgage loan modification, please contact us by completing a quick application right here on our website. We are Modification Zoom, and we are here to help!
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Thanks for sharing information about loan modification. I think loan modification companies modifying loans for make payment more affordable.
Mortgage loan modifications can really help people save money on their monthly loan payments and avoid foreclosure! I hope that more and more people take advantage of the loan modification program and keep their houses.
The most important part of the new reform in my opinion is the rule that a loan modification can not be altered to force the homeowner to pay more than 31% of his or her monthly income to the new mortgage payment. I think that is very reasonable and in the best interests of everyone involved.
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I’ve heard a few stories where the loan modifications have actually worked, where the borrowers were able to get really affordable interest rates. But I’ve also heard a lot more where the lenders didn’t seem to want to be willing to do anything about it.