The real estate market has caused unbearable stress and heartache for thousands of homeowner’s.  Let’s break this cycle and  “SPEAK UP!”  Don‘t be a victim get in the driver‘s seat!  Education is the key!  Take the time to learn more about the options to help you avoid foreclosure.  Take a stand and say “NO” to Foreclosure!  Don’t delay, start today!

Making Home Affordable is an integral component of the Obama Administration’s effort to help homeowners avoid foreclosure.  Under this program there are numerous plans to assist homeowner’s, with varying hardships and loan types, remain in their homes.  If you are struggling with your monthly mortgage payments or have already missed a payment, NOW is the time to take action.

Since Making Home Affordable offers a vast array of programs, which are too extensive to discuss in one article, we are going to break down this topic into several mini-series over the next few weeks.  This week we are going to discuss MHA (Making Home Affordable) options to lower mortgage payments through loan modifications.

HOME AFFORDABLE MODIFICATION PROGRAM (HAMP) - If you are having trouble making your mortgage payments for reasons other then unemployment, you may qualify for HAMP.  HAMP can lower your to 31 percent of your monthly gross income.  ELIGIBILITY REQUIREMENTS:

• YOU MUST OCCUPY THE HOUSE AS YOUR PRIMARY RESIDENCE
• YOU OBTAINED YOUR MORTGAGE BEFORE JANUARY 1, 2009
• YOU HAVE MORTGAGE PAYMENTS THAT IS MORE THAN 31% OF YOUR MONTHLY GROSS INCOME
• YOU OWE LESS THAN $729,750 ON YOUR HOME
• YOU HAVE A FINANCIAL HARDSHIP AND ARE EITHER DELINQUENT OR IN DANGER OF FALLING BEHIND
• YOU HAVE SUFFICIENT, DOCUMENTED INCOME TO SUPPORT THE MODIFIED PAYMENT
• YOU HAVE NOT BEEN CONVICTED OF FELONY LARCENY, THEFT, FRAUD OR FORGERY, MONEY LAUNDERING OR TAX EVASION IN CONNECTION WITH A MORTGAGE OR REAL ESTATE TRANSACTION WITHIN THE LAST 10 YEARS

SECOND LIEN MODIFICATION PROGRAM (2MP) - If you first mortgage was permanently modified under HAMP and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage.  ELIGIBILITY REQUIREMENTS:

• YOUR FIRST MORTGAGE WAS MODIFIED BY HAMP
• YOU HAVE NOT BEEN CONVICTED OF FELONY LARCENY, THEFT, FRAUD OR FORGERY, MONEY LAUNDERING OR TAX EVASION IN CONNECTION WITH A MORTGAGE OR REAL ESTATE TRANSACTION WITHIN THE LAST 10 YEARS
• YOU HAVE NOT MISSED THREE CONSECUTIVE MONTHLY PAYMENTS ON YOUR HAMP MODIFICATION
• YOU OWE MORE THAN $5,000 ON YOUR SECOND MORTGAGE
• YOUR MONTHLY SECOND MORTGAGE PAYMENT IS MORE THEN $100

PRINCIPAL REDUCTION ALTERNATIVE (PRA) - Due to the drastic reduction property values, this program was designed to help homeowners whose homes are worth significantly less than what they owe by encouraging mortgage companies and investors to reduce the amount you owe on your home.  Participating lenders are required to develop guidelines for this program and evaluate homeowner’ for participation.  ELIGIBILITY REQUIREMENTS:

• YOUR MORTGAGE IS NOT OWNED OR GUARANTEED BY FANNIE MAE OR FREDDIC MAC
• YOU OWE MORE THAN THE HOME IS WORTH
• YOU LIVE IN THE HOME CARRYING THE MORTGAGE YOU WANT TO MODIFY
• YOUR MORTGAGE PAYMENT IS MORE THAN 31 PERCENT OF YOUR GROSS MONTHLY INCOME (CLICK HERE TO USE THE MODIFICATION EVALUATOR)
• YOU OWE LESS THAN $729,750 ON YOUR 1ST MORTGAGE
• YOU ARE HAVING FINANCIAL HARDSHIP AND ARE EITHER DELINQUENT OR IN DANGER OF FALLING BEHIND ON YOUR MORTGAGE
• YOU HAVE SUFFICIENT, DOCUMENTED INCOME TO SUPPORT THE MODIFIED PAYMENT
• YOU HAVE NOT BEEN CONVICTED OF FELONY LARCENY, THEFT, FRAUD OR FORGERY, MONEY LAUNDERING OR TAX EVASION IN CONNECTION WITH A MORTGAGE OR REAL ESTATE TRANSACTION WITHIN THE LAST 10 YEARS

FHA HOME AFFORDABLE MODIFICATION PROGRAM (FHA-HAMP) - If your current mortgage is insured or guaranteed by the Federal Housing Administration (FHA), you may be eligible for a program through that government agency.  In additions to the loan modification, request information on the PARTIAL CLAIM PROGRAM.  Through this program, FHA will pay your arrears to the lender but you must be 90+ days delinquent.  For more information on their programs contact your mortgage company or call the FHA National Servicing Center at 877-622-8525.

VETERAN’S ADMINISTRATION HOME AFFORDABLE MODIFICATION (VA-HAMP) - If you have a loan that is insured or guaranteed by the Department of Veteran Affairs, you may qualify for a loan modification through that agency.  For additional information, contact the Veteran Affairs Regional Loan Center at 877-827-3702 or visit their website at HomeLoans.VA.gov.

The eligibility requirements provided in this article are for guidance only.  Eligibility criteria may vary from lender to lender.  Contact your mortgage company to verify eligibility requirements and to see if you qualify.  To get a list of participating lenders, CLICK HERE.

For additional information contact the Atlanta Property Shoppe at Keller Williams Realty.  Our distress property team can give you the expertise necessary to relieve the uncertainty and most of all, help your family.

Tammie Seldon
Realtor
Atlanta Property Shoppe at Keller Williams Realty
Office: 404-419-3696
Fax: 678-668-8060
Website: www.AtlantaPropertyShoppe.com
Website: www.MyLifeWithoutForeclosure.com
Email: Tammie@AtlantaPropertyShoppe.com
Twitter: @AtlPropertyShop