December 3, 2010
The Home Affordable loan modification program is a government homeowner bailout program designed to help people who can no longer afford their monthly loan payments. This program has been in effect since 2009 and has been through several changed to help lenders and borrowers alike.
The program is not indefinite; at the time of this writing it is set to expire on June 10, 2011, so borrowers considering getting help from the Home Affordable program should act soon. The Home Affordable official site has a set of guidelines for establishing whether a borrower is eligible to apply for this program.
They include a requirement that the home in question is the primary residence, the amount owed must be under or equal to $729,750, and there’s also a debt-to-income ratio figure applied. The Home Affordable questionnaire asks potential applicants if, “a monthly mortgage payment (including taxes, insurance, and home owners association dues) (is) greater than 31% of your monthly gross (pre-tax) income.”
If the answer is yes, you may be eligible to apply for assistance from the Home Affordable Modification Program (HAMP). This program is voluntary and not all lenders participate; those who do participate must follow Department of Housing and Urban Development guidelines, which include;
“Participating servicers may not refer a loan for foreclosure sale or proceed with a foreclosure sale on an eligible loan until the homeowner has been evaluated for HAMP and, if eligible, a trial modification offer has been made. Participating servicers must use reasonable efforts to contact homeowners facing foreclosure to determine their eligibility, including in-person contacts at the servicer