Recently the Home Affordable Modification Program has helped many homeowners avoid the ravages of the declining economy and the rising foreclosure rate. It has given a breath of fresh air to what seemed to be a dire situation.
In February of this year President Obama put this initiative into effect in order to allow homeowners to keep their primary home. This plan works by reducing the monthly mortgage payment a homeowner makes so that the mortgage fits into their budget.
This wonderful initiative has proven to be a major break for those homeowners who have come close to losing their house and the government has allowed thousands of dollars to help give both the consumer and the economy a big boost.
What homeowners are qualified?
It is a great time to apply for help in paying off your mortgage. After all, you may be able to dodge any worries of high mortgage payments, foreclosure and you won’t have all of those nasty marks on your credit history. The government has set forth several guidelines that can help you in determining if you qualify for this program.
One of the biggest factors will be when your mortgage started. Any home mortgage that originated before January 1, 2009 may be accepted.
Another major stipulation for qualifying for this program is that your home has to both owner occupied and your primary residence. If the subject property in non-owner occupied, has someone else residing in the home and paying you rent then you cannot qualify for this modification. Your home also has to be the place that you currently live. The best way to prove this fact during the application process is by simply showing a piece of mail that has a recent date, your name, and address.
Your monthly income must meet specific guidelines as does your current unpaid mortgage balance. It is important to speak with a professional before applying for help.
During the application process, there will be several factors being evaluated with your income, expenses and assets being one of the biggest aspects. Be patient and take care to include everything you own that has any real value. Failure to disclose anything could lead to future difficulties and keep you from qualifying for this program or government assistance in later years.
If you are going through a bankruptcy, you may still qualify. These kinds of suits are common during times of financial turmoil and may not exclude you from the program.
The plan will be ending the end of December 2012, but all payments will continue for several months after the finish.
One of the most interesting facets of this plan is that the government has decided to include a cash incentive for homeowners who apply early and able to make timely monthly mortgage payments.
The Home Affordable Modification Initiative is a great way to get a boost on your home mortgage payments. It will not only help you with reduced mortgage payments, but also keep your home from being foreclosed.
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