From your Seminole County foreclosure attorney and Seminole County short sale realtor, here are some FREE foreclosure resources. The Home Affordable Modification Program (HAMP) is a federal program that provides Seminole County homeowners with FREE Foreclosure Help. Remember, the program provides foreclosure assistance to Seminole County homeowners FREE SO DO NOT PAY any fees to a third party company to help you with a loan modification! It is illegal for these companies to charge up front fees and the Florida Attorney General’s office recently sued three Miami-Dade companies for ripping off Florida homeowners in the foreclosure process through a loan modification assistance scam. You can read about the investigation into mortgage loan modification scams here.
The HAMP program is designed to help financially struggling homeowners avoid foreclosure by modifying their mortgage loans to a more reasonable level that they can afford. It’s a great alternative to foreclosure for Seminole County, Oviedo and Winter Springs homeowners.
To be eligible for HAMP, a homeowner MUST:
1) Be delinquent on their mortgage payments OR face an “imminent risk of default,”
2) Live in the property as the borrower’s primary residence
3) Have a mortgage that was originated on or before Jan. 1, 2009 with the unpaid principal balance no greater than $729,750.
The borrower must submit a packet to the chosen lender, who will first analyze the packet to see if the borrower is eligible. If so, the servicer will then adjust the borrower’s monthly mortgage payment so that it is no more than 31% of the borrower’s total pretax monthly income. The lender will:
First, reduce the interest rate to as low as 2%,
Next, if necessary, extend the loan term to 40 years,
Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.
Note: Servicers may elect to forgive principal under HAMP on a stand alone basis or before any modification step in order to achieve the target monthly mortgage payment.
HAMP is not for everyone. The intent of HAMP is to help homeowners who are behind in their mortgage payments, but still have an income stream that is just not quite enough to get by given the country’s recent economic problems. Note that Oviedo and Winter Springs homeowners who are current on their mortgage payments, but have a good faith belief that they will very soon be unable to make the payment due to economic hardship like medical bills, lost job, injury and the like, are potentially eligible for HAMP. These homeowners can apply for HAMP to stay in their current home and reduce the monthly payment to a level that is affordable, with the possibility of the lender forgiving a portion of the principal.
If you’re behind in your mortgage payments but can still afford a lower payment, then look into HAMP.
Most major banks are familiar with the HAMP guide lines and typically require that a borrower looking for a loan modification submit an application, and in addition, submit a package of financial statements and related documents to support the application. Your lender should be your first point of contact if you think you qualify for a loan modification as they usually have specific requirements about the form and content of your application.
If you have any questions about a loan modification, contact Richard for a FREE consultation.
Also, if you haven’t watched your credit report (from all 3 agencies) then you may need to do so simply to see if there are any errors that you can sort out. That will also put up a spike in your credit score if you can get any of those negative erroneous details deleted.
[...] Home Affordable Modification Program (HAMP): Free Pre Foreclosure Help for Seminole County Links [...]
Nice blog, would of made the blog bit longer, enjoyed reading it though.
Me and my friend tried modifying through my attorney and in the end saved over $500 per month.
I think the Seminole County short sale of the home is one solution to the problem. You can first try for home loan modification.
So the mortgage must meet certain conditions?
To get mortgage loan modification acceptance, get yourself acquainted with all the new laws and regulations for arranging loan mod in you area and for your particular lender having the aid of a specialist who is knowledgeable in filing successful mortgage loan modification applications. Don’t forget to get all the important files prepared before submitting the application to your financial institution .
I very much like your blog. Excellent content. Please continue posting such great cotent.
So long as you are employed and paid a regular salary into your savings account, you have a good shot to get the loan modification and if not, a Seminole County short sale.
[...] and short sales show. A previous blog post talks about the HAMP foreclosure prevention program. HAMP foreclosure prevention program You can also read the entire Wall Street Journal article on how HAMP has not reduced foreclosures [...]