FHA HAMP (FHA HAMP LOAN MODIFICATION GUIDELINES
Home Affordable Mortgage Program
FHA is now allowing its loans to be
modified under the Home Affordable Modification Program with
slight variations. The qualifiers are the same, however the
Borrower must be delinquent at least 30 days for consideration.
Principal forbearance is allowed, however only to a maximum of
30% (i.e. $100000 loan amount that requires a principal
forbearance in order for the Borrower to qualify, cannot be
lower than $700000 as this will cause a denial). Foremost, the
maximum back-end debt ratio allowed is 55% (excludes household
expenses. Includes mortgage obligation(s), credit cards and
installment loans). If the back-end debt ratio exceeds 55%, the
modification request will be denied.
Considerations
A lower mortgage payment may sound good. But, you need to
consider that fact that you could be paying toward a mortgage
that is much higher than what your property is worth. Also, the
program is not necessarily a long-term solution but rather a
short-term solution as the monthly payment will increase every
12 months and then arrive at a maximum amount for the remainder
of the mortgage term.
Successfully navigating through the Lender approval process is
lengthy and requires that all documentation is correctly
submitted. An incorrect submission will only lead to delays and
possibly denial. Do it right from the beginning. Use our loan
modification software to complete your package quickly and
accurately.
Loan Modification News / Hints
(Please click the links to view the full article)
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This act will 'unprotect' the home-owner and have them face organizations that have legal departments that are bigger than the average home's square footage.
Bank Of America / Countrywide Loan Modification
They have signed up under the Home Affordable Mortgage Program to provide relief to those home-owners that are struggling and have a Fannie Mae or Freddie Mac mortgage.
Litton Loan Serving as not a Lender but services loans on behalf of other Banks. Therefore, their skill set is focused on collections not on assisting home-owners with a mortgage modification.
Wells Fargo is one of our nation's largest banking institutions. They acquired ailing Wachovia Bank recently.
OneWest Bank (IndyMac ) Loan Modification
OneWest Bank was formed from the ashes of Indymac Federal Bank. Indymac Federal Bank was originally IndyMac Bank before it was taken over by the FDIC
Learn about trends and loan modification process with ask questions and interact with other loan modification professionals.
Verify Fannie Mae or Freddie Mac Loans
If the loan is owned by Fannie Mae of Freddie Mac, it may be eligible for the Home Affordable Modification Program.