HAMP Loan Modifications Spiked in January
The Home Affordable Modification Program or HAMP allows for loan modifications for those that can no longer afford to make their monthly mortgage payments. Borrowers may qualify for a loan modification under HAMP to make their payments more affordable. Millions of borrowers who are current, but are having difficulty making their payments and borrowers who have already missed one or more payments may be eligible. Under HAMP the borrower must answer these 5 questions:
- Is your home your primary residence?
- Is the amount you owe on your first mortgage equal to or less than $729,750?
- Are you having trouble paying your mortgage?
For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
- Did you get your current mortgage before January 1, 2009?
- Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income?
Mortgage servicers have recently increased efforts to change trial modifications to permanent status under the Obama administration’s Home Affordable Modification Program . The number of permanent mortgage modifications under the federal Making Home Affordable program has jumped 75 percent last month nationally and nearly 70 percent in Arizona and the Valley according to a report out today in the East Valley Tribune.
Who do you know that can answer "YES" to the five questions above? They should definitely check with me to see what their next step might be.