Are you Eligible for a Home Affordable Modification Program Loan Modification?
Home Affordable Modification Program, which is part of the Obama administration’s Making Home Affordable plan, might be an option for those homeowners who spend more than 31 percent of the income on housing costs and are already delinquent on their payments or are in danger of foreclosure because of a change in their financial situation.
This program was originally intended for Freddie Mac or Fannie Mae and few other loan services, so borrowers are advised to call their loan owners to discuss their situation. As stated in the 8 tips, you will have to be patient and very persistent, because loan servicers are generally very overwhelmed with inquiries. Borrowers whose mortgage is in foreclosure are eligible for the program. The borrower must sign a loan modification agreement, produce a hardship letter and other documents. Monthly mortgage payments, property taxes, homeowner association dues and other homeowners-related expenses must exceed 31% of the borrower’s monthly income.
Furthermore, the property must be a duplex, triplex or four-unit residential property. Condominiums, cooperatives and manufactured housing units are also allowed. The owner of the property must reside within the property, and they will be asked to furnish proof of occupancy. Vacation homes, rental properties and second homes are not eligible, and the property is subject to a value test to determine if a loan modification would be a sensible venture for the investor. Misrepresentation of the qualifications of the borrower is a federal crime.
Loan Modification Lawyers and Bankruptcy Attorneys in Orlando, Florida
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