FHA has help for borrowers that are “underwater” on their mortgages. Under the FHA plan, existing underwater homeowners can refinance their existing non-FHA loan into a FHA loan as long as they are current on their loan and their current lender reduces their total mortgage debt by at least 10 percent of the loan amount. The total mortgage amount for the borrower after refinancing cannot be greater than 115 percent of the current value of the home, bring the loan amount for an underwater borrower closer to the actual value of their home.
With the ever increasing rates of foreclosures and homeowners walking away from their homes, the government has announced a revision to the short refinance modification. Announced back in March 2009 the home affordable mortgage program has helped thousands of struggling home owners to stay in their home. However, there is still certain areas of the country that has seen such a devaluation of their property that these homeowners are choosing to walk away. Below are some of the basic requirements for this new short refinance modification.
There are some basic requirements that need to be fulfilled. The first thing is that the home should be your primary residence. The amount you owe should be either equal to or less than $729,750. There should be a genuine financial problem due to which you are really unable to repay the installments. Your mortgage loan should be received before January 1, 2009 and the installments should be more than 31% of your monthly income.
If you fulfill these eligibility criteria, you can apply for a loan modification program. Your application should be appropriately filled and you should provide all information regarding the loan along with relevant and supporting documents. You should provide a hardship letter that provides information about your financial problem and how you will be able to solve it once your loan is restructured. The lender is more concerned about the fact that his loan installments will be paid regularly after restructuring the home loan of the borrower.
freeHAMPreport.com offers a new software for users to check potential eligibility for Federal mortgage payment assistance via the Home Affordable Modification Program (HAMP). In 15 minutes users can register without any commitment or credit card, complete a questionnaire and receive a FREE lender ready package in seconds! The report includes detailed analysis and populates the appropriate lender forms so users can submit for a loan modification with ease and for FREE.
Learn more about Obama Making Home Affordable Mortgage Program.
