Recently the Home Affordable Modification Plan has helped many homeowners avoid the ravages of the declining economy and the rising foreclosure rate. It has given new light to what seemed to be a very dim situation.
This modification initiative was implemented in March by President Obama and is meant to help Americans hang on to their primary home. The main concept of this program is to both reduce the homeowners monthly mortgage payment to a level that the lender can agree to but more importantly, a payment that the homeowner can fit into their budget.
It is amazing how much progress the mortgage bailout initiative has made and homeowners and lenders alike are jumping for joy over the benefits. It depleted the amount of their debt and took away a lot of the worries that have been weighting them down.
Which homeowners are eligible?
Due to the massive number of homeowner’s and the fact that most lenders are not adequately staffed, now is the time to jump in and get help in paying down your mortgage. It will help you avoid foreclosure and the credit issues that will haunt you for the next several years. There are guidelines put into place that will let you know if you are eligible for the home affordable modification program.
The main qualification is that you received your current mortgage prior to the beginning of this year.
It is vital that your home be both your primary residence and owner occupied or you will not qualify. To qualify, the property cannot be an investment and the house cannot be left sitting empty under the terms of this plan. The basics are that the house be your current residence. You will have to document proof of residency with some sort of bill with your name and address on it during the application process.
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.
There will likely be a short but thorough verification process where all of your income, assets and expenses will be scrutinized. Be sure that you claim every asset that you have and practice full honesty during the entire process. Lying about any of these issues will get you into trouble at some point during the application process and could cause you to be declined from the plan later on.
Don’t worry about not qualifying in case you are in the midst of a bankruptcy filing. This will not necessarily be a deal breaker for you. The important thing is that you are truthful and that you disclose all of the details during the application process.
The initiative will be ending the end of December 2012, but all payments will continue for several months after the finish.
The Treasury Department has offered a cash incentive to those who apply early for this initiative and make timely monthly mortgage payments. This is a way to encourage people to sign up and the government hopes this will reach everyone that is qualified.
The Home Affordable Modification Initiative was put into place to help homeowners and their lenders avoid foreclosure and excessive mortgage payments. It is just one way that the government is trying to help resolve some of the major economic issues we are facing.