Obama’s Plan: Make Home Affordable Loan Modification (3 of 3)
This post will focus primarily on the loan modification side of things.
Make Home Affordable Loan Modification – HAMP
Many Homeowners have experienced some hardship that has changed the financial outlook of the household budget for what ever reason. Examples of common financial hardships can be found in the list below.
- Loss of job due to employer cut backs
- death of a family member
- medical injury or accident
Sometimes a homeowner is unable to make the agreed upon payment of their mortgage. In cases such as these the borrower will often look towards their lender for help. many times a loan modification is seen as the best solution to the troubled mortgage asset.
The Make Home Affordable Plan has a section of the plan dedicated to loan modification. This program is now often refered to as HAMP, Home Affordable Modification Program. The Make Home Affordable Loan Modification Plan has the following guidelines.
- The mortgage payment must be unaffordable for the Homeowner under the current mortgage agreement
- The adjusted payment or modified payment must be in the range of 31%-38% of the homeowners budget
- The property must be for the Homeowners primary residence
- This plan is not for speculators
- This plan is for Homeowners who are no more than two or three or so payments behind.
- It is ok if the Homeowner is in foreclosure
Obama’s mortgage help plan will help American homeowners make home affordable and many of the programs are starting to look as if they will prove be a success!
I give a large part of this success to the wise part of incentive it has given the lender. The mortgage lenders ar given a commission on each loan that they are able to modify.
This was originally supposed to be the third and last post of a three post series on Obama’s efforts to make home affordable but there are new and exciting developments that have surfaced such as a new program and part to the Making Home Affordable Plan that was announced on June 23rd 2010 by President Obama. He unveiled a program called the Hardest Hit Fund which is a program that will help those folks who live in the five states most effected by the financial hardship and housing crisis. i will post on the details of this new program as well as the other smaller yet still important and useful assistance programs that also make up a portion of the Making Home Affordable Plan.