LoanSafe.org

Making Home Affordable

The Making Home Affordable Program was announced by the Obama administration On February 18, 2009 has part of governments strategy to bring housing market back on track. The new program offers two different possible solutions for struggling homeowners. They can refinance their home loan through the Home Affordable Refinance Program (HARP) or they can apply for a loan modification on their mortgage through the Home Affordable Modification Program (HAMP).

Obama hopes to help 7-9 million families avoid foreclosure by restructuring or refinancing their mortgages.

Many homeowners are coming to LoanSafe.organd have questions or are having problems with their  mortgage servicers. So, we wanted to list the qualifications here and state the facts.

What you need to realize is that not everyone will qualify for this program and you need to get educated on the process in order to understand the type of help you can receive. Everything from the type of loan you have down to who owns your mortgage will come into play in qualifying.

I have broken the process down into 3 qualifying steps. If you pass step #1, then please proceed to step #2 and if you pass #2, then you’re almost done.

Step #1 – Who is your lender and are they participating?

Here is a list of lenders, phone numbers and websites of lenders that are participating in the Making Home Affordable Program.

If your lender is on this list, please proceed to step #2. If they are not, then this program will not assist you at this time.

Step #2 – Determine if your mortgage and property qualify?

In order to qualify for a loan modification under HAMP, you must:

  1. Be the owner-occupant of a one to four unit home;
  2. Have an unpaid principal balance that is equal to or less than:
  • 1 Unit: $729,750
  • 2 Units: $934,200
  • 3 Units: $1,129,250
  • 4 Units: $1,403,400;

If you meet the above requirements, then proceed to check your loan for these items:

  • Have a first lien mortgage that was originated on or before January 1, 2009;
  • Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31 percent of your monthly gross (pre-tax) income; and
  • Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

If you answered YES to all of these questions, then you may be eligible for a loan modification under HAMP. But only your servicer will be able to tell you if you qualify and please remember that this is a voluntary program for them.

Step #3 – Coming Soon