A house is a great investment, but the economic downturn of the last decade saw many homeowners drowning in mortgage debt. That’s why in 2009, the government created the Home Affordable Modification Program (HAMP), which aims to make home payments more affordable for people who are struggling financially.
How does this program work? Who can qualify for it? Below are the vital details you need to know:
How does this program work? Who can qualify for it? Below are the vital details you need to know:
Important Numbers
You must have secured your mortgage no later than January 1, 2009. Furthermore, the amount you owe on your primary residence should be no more than $729,750, or 934,200 if you have a two-unit rental property.
Proof of Hardship
You must prove that your delinquency is brought about by circumstances like unemployment, divorce, or serious illness. In fact, you have to sign an affidavit of financial hardship and supply documentary proof of your income.
Varying Rates
To help borrowers pay off their mortgage, lenders who participate in HAMP will charge no more than 38% of the homeowner’s pre-tax monthly income. On top of this, the government can chip in to bring that number further down to 31%.
To negotiate the best deal possible, however, homeowners are advised to get help from an experienced foreclosure defense attorney. After all, banks and lenders have their own lawyers lobbying for their interests. Therefore, it makes sense for homeowners to have advocates of their own.
0 comments:
Post a Comment