Quick Facts About Obama’s Loan Modification Procedures

Federal Loan Modification Program is a smart and innovative program initiated by Obama in order to bring the home mortgage industry back to track. Also known as the Home Affordable Modification Plan, or HAMP, Obama administration allocated $75 billion as stimulus money to help the home owners who belong to risk category. The homeowners who belong to risk category include those who have proven default on the home mortgage, and those who are on the brink of getting defaulters. The primary objective behind Obama’s HAMP is to offer the borrower an affordable and continued payment so that their property is not foreclosed. The very uniqueness of HAMP program is that it is beneficial for the borrower as well as the lender. The federal government has set forth certain guidelines that will ensure whether the borrower fits the criteria under HAMP program or not. Based on these guidelines, the borrower will be categorized ideal or not ideal candidate to seek the benefits under HAMP. The essential element to know in the program is that it is free for the borrower and average home owner can easily modify his/her loan terms. It is also suggested that the homeowners do not hire the services of any third party company or an attorney and pay them high upfront fees. The borrowers can apply for the loan with their respective lenders only.Get ready to avail Obama’s Federal HAMP Loan Modification program for securing an affordable home for yourself and your family. However, there are certain prerequisites of the HAMP which you need to qualify before you become eligible. Plenty of information on Obama’s HAMP is available on the Internet, along with the necessary laid down guidelines. Once you have carefully studied the guidelines and the eligibility criteria under HAMP, you can take a step forward to fill the online application to consider yourself as a successful candidate.Here are the HAMP Loan Modification Guidelines that will make the borrower eligible:The borrower should have his/her primary residence.
The borrower should present a financial scruple or a hardship situation in their loan application
The consolidated loan amount that will be available to the borrower for single unit is less than $729,750.
The borrower will need to provide 2 months bank statements, along with proof of income-paycheck stubs, tax returns, award letters, roommate income, etc.
The borrower should also provide financial statements detailing your income and expenses.