What is HAMP and can it help me modify the loan on my Los Angeles Home?
If you can no longer afford to make your monthly loan payments, it is possible that you can qualify for a HAMP loan modification to make your monthly mortgage payment more affordable. HAMP stands for Home Affordable Modification Program and it offers eligible borrowers the opportunity to modify their loan to lower their monthly mortgage payment to 31 percent of their verified gross (pre-tax) income to make their payments more affordable. If you are currently having difficulty making your payments, even if you have missed one or more payments, you may be eligible for the Making Home Affordable HAMP option.
To be eligible for HAMP, the following four items must apply to you:
- Own a one- to four-unit home that is your primary residence
- Have received your mortgage on or before January 1, 2009;
- Have a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31 percent of your gross (pre-tax) monthly income; and
- Owe an amount that is less than or equal to $729,750 on your first mortgage for a one-unit property (there are higher limits for two- to four-unit properties).
Foreclosure is not the best option! If you qualify for HAMP, you must complete a trial period of three or four months at your modified payment amount to demonstrate you are able to make the payments on time before your mortgage will be permanently modified. The modification can be accomplished in a variety of ways. To make payments more affordable, your interest rate may be lowered, the mortgage term may be extended up to 40 years or a portion of the principle amount owned could be forgiven. These things will be up to the servicer of your loan.
Even if you don't qualify for the HAMP program, don't let the bank foreclose on your home. There are other options like HAFA (Home Affordable Foreclosure Alternative), deed in lieu of foreclosure or a standard short sale. Read this post for information on qualifying for a short sale. Any of these can be better alternatives for you credit and for your peace of mind than a foreclosure.
If you are having trouble making ends meet, don't let the bank foreclose on you! I urge you to contact me directly at 213-215-4758 and I will go over the specifics of your situation with you and help you determine your best course of action.
For more information on shorts sales in Los Angeles County and buying or selling property in Silver Lake, Echo Park, Los Feliz, and surrounding areas, contact me directly at 213-215-4758 or check out LApropertySolutions.com
Broker Associate, HAFA certified, E-pro
Keller Williams Realty, Los Feliz
213-215-4758
info@LApropertySolutions.com
http://www.LApropertySolutions.com
Copyright © 2010 By Jenny Durling *All Rights Reserved * What is HAMP and can it help me modify the loan on my Los Angeles Home?*
That's not something in those left handed cigarettes is it? Oh, that's hemp.
HA! Thanks for the laugh Andrew!
Hi Jenny,
Thanks for the post on the HAMP program. Have a great day.
I recently got my HAFA certification and can't believe how much help is available to people in financial straits that they simply are not aware of. I think it's up to us to help educate the public as much as possible on their options.