ModPilot and the Nitty Gritty of HAMP
Carlsbad, CA – Homeowner’s throughout the country have been using the ModPilot Do-It-Yourself package to modify their mortgages for over two years. During this time, ModPilot users have gotten successful loans through a variety of different programs, but more have utilized the Making Home Affordable program than any other single program. What do these customers have in common that allow them to get qualified on the government program?
Qualifying for the Making Home Affordable Modification program requires proving that you meet a number of criteria set forth by the Treasury Department and the Obama Administration in January, 2009. The main criteria are as follows:
1. Owner Occupied – You must currently live in the home that secures the mortgage you are trying to modify.
2. Single Family Residence to Four Unit – Any property that has more than four units attached is not within guidelines.
3. Loan less than $729,500.00 – The program uses this figure as the upper limit of the outstanding loan value. If your loan is greater than this number, you will be automatically turned down.
4. Loan originated prior to January 1, 2009 – Any loan written after this date will not qualify for this particular program. This is mostly due to the fact that most lending guidelines changed at the end of 2008, so the people who qualified for loan after this date are deemed to, as a whole, qualify for the loans they are paying.
5. Hardship – Generally speaking, an applicant has to be able to point to a financial hardship that has led to difficulty making the monthly payments.
6. Default, or Imminent Danger of Default – Borrowers have to be able to show that they have already fallen behind in their payments or they are in “imminent danger” of falling behind on the payments. “Imminent Danger” is defined in the program.
These criteria serve to screen out homeowners who have not endured a hardship who are looking merely to lower their payments because interest rates have dropped or because the value of their home has dropped. There are additional safeguards in place to make sure that homeowners who no longer have the financial ability to make any payment are not given modifications that they cannot afford in the long run. Put simply, the government is trying to find the people who both need the help that the program can offer and who have the ability to maintain the payment for years to come.
ModPilot can help you determine for yourself whether or not you qualify for this program, how to apply in the most efficient and effective manner, and how to get yourself through the program quickly and decisively. ModPilot can even help you if you don’t qualify for the government’s programs by helping you find other programs that might help your situation.