Through most of the mortgage modifications, you may just change the payment plan or get a lower percentage of loan rate which might definitely help you save some money. But there is a certain program that you might find helpful regarding mortgage modifications. If you have a loan modification lawyer, ask him/her about the Home Affordable Modification Program. Not all the states have this program, but if you live in where it’s applicable and meet the required criteria then you can really save some money. However, if you have money for making the payment but still want to get the advantage of this program, then it’s not for you.
Requirements of availing HAMP
You can contact a loan modification company to know the requirements of HAMP and how to avail their services. After having a long conversation with their representatives, you will understand the necessary requirements to get benefits from this program. Some of the requirements are mentioned below:
- The property under mortgage must be your primary residence. It can’t be your second or third home.
- If you are falling behind your monthly installments on a regular basis.
- You are facing a financial crisis due to which you can’t pay your mortgage.
- If you spend more than 31% of your monthly income for housing expenses.
These are just the basic requirements, there are also some money-related requirements that are essential in this case. You can know about them from your loan modification consultant.
There are some other mortgage modifications which you may also avail with the help of a loan modification officer, but these may not be as good as HAMP. Given below are some facilities that can be obtained when you are facing foreclosure.
- You can arrange for paying only the interest on the loan to avoid foreclosure for some time.
- You can get a full moratorium on payment and get more time to repay the due.
- Close the deal with a reduced payment amount, like positive-amortizing or negative-amortizing.
- If your lawyer can reduce the percentage of the loan rate then it will definitely save some money.
- The split mortgage is another good option to avoid foreclosure.