Affordable Mortgage Loan: Affordable Mortgage Modification

October 6, 2011 · Posted in Mortgages 

Are you searching for the right way to make ends meet again and keep current on your mortgage? If you think you’ve run out of options, consider mortgage loan modification. Modification packages are individually crafted between the borrower and the lender to set up new interest rates and terms that are realistic for you.

Whether you intend to stay in Arizona for a long time, or just plan to buy a winter vacation home, you will definitely get your moneys worth. The prices of homes in Arizona are at their lowest right now and they will be increasing in value in a matter of months. So if you just plan to buy a vacation home you are making a very good investment. You will be buying a house for an extremely low price and later on, selling it for twice the amount you paid for it.

To get affordable mortgage loan, homeowners and their applicable home loan must meet some basic qualifications. The borrower must use the property as his or her primary residence. The borrower must be suffering from a financial hardship that they did not cause themselves. The mortgage loan amount on the primary mortgage must have been originated for less than 729,000 dollars. The current mortgage payment must be at least 31% of their gross monthly income. If you are a homeowner who meets these basic qualifications, then you may be able to lower your monthly home loan payment by restructuring through the Home Affordable Modification Program. To get this process started, you must apply for modification assistance.

If both the borrower and the loan are eligible for HAMP, then the next step is to apply for the Obama loan modification by obtaining, completing and submitting the Home Affordable Hardship Affidavit. By submitting this application to your lender you will be entered into a HAMP trial modification. This process takes several months. You will need to make all reduced trial modification payments on time as well as provide the documentation and information needed to verify your financial eligibility for the modification assistance requested. This trial process is monitored by the loan servicing company. They are the party who will inform you of your ultimate modification approval.

After successfully completing the trial modification and being approved for a permanent HAMP modification by the lender, all the homeowner has to do is sign the modification contract. After this, the homeowner will be able to keep the more favorable and affordable home loan, which replaces the old mortgage.

Learn more about Obama Mortgage Relief Plan Qualifications.


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