Federal Plan

Those homeowners who have been beating their head against a brick wall trying to get their home loan modified with their mortgage holder will be glad to learn of the new federal loan modification process initiated just last month.  The Federal Treasury Department has reacted to the extremely low rate of permanent modifications being offered to struggling homeowners with a new, streamlined process that offers less paperwork and shorter turn times.

The dismal success rate of the federal loan modification plan, HAMP, has lenders, servicers, homeowners and Treasury Department all pointing fingers at each other in an effort to explain the low numbers of permanent loan modifications.  There is still over $73 billion dollars available to fund HAMP, why is this money still sitting there and not being used to help the deserving borrowers facing foreclosure and the loss of their home?  The problem seems to have been a program that required too much paperwork from borrowers, too much underwriting from lenders and servicers, and constant revisions to the government guidelines.

Now, effective April 5, 2010, new guidelines and timelines kick in, and the hope is that more homeowners will at least know where they stand quickly-whether they qualify for HAMP and a loan workout or if a dignified exit strategy is their best option.  Here is what homeowners need to do in order to get their loan modification answer within 30 days:

1. Contact their lender/servicer and request consideration for HAMP
2. An application package will be mailed out to the borrower, or it can be downloaded on the lender website
3. Homeowners must complete a 3 page application, including a financial statement detailing their income and expenses.  This is important information and will used in evaluating whether the borrower meets the federal approval formula for HAMP.
4. Send in the application along with 30 days of paystubs, a signed Hardship Affidavit, and a signed 4506t form (provided with application)
5. Upon receipt of a COMPLETE loan modification application, lenders now have just 30 days to respond to the homeowner with an answer-either off a loan workout or offer another solutions-such as short sale or deed in lieu of foreclosure.

Know the Guidelines

The vast majority of homeowners are hoping for loan modification approval, but unfortunately many will not qualify simply because their application did not meet the federal guidelines for HAMP approval.  There is actually a mathematical equation that is used to determine who will qualify for this very affordable loan workout program.  The goal is to modify those borrowers who can prove that they fit into this standard formula.

Homeowners need to have a basic understanding of how to prepare their paperwork so that it proves in black and white that they fit into the guidelines for HAMP.  It can be confusing-however there is a software program available to borrowers that will make this procedure alot less confusing and frustrating.  All the 7 triggers for HAMP approval are calculated automatically when the homeowners income and debts are input.

Download immediately!

Not sure how to qualify for a HAMP loan modification? Loan Mod Quick App software takes the confusion out of preparing your application. This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important calculations for you. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! You can save hours of time and avoid costly mistakes. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more. Visit myloanmodificationcenter.com and order today-Immediate download!