Loan Modification Help Under HAMP - 30 Days to Approval Guidelines

May 28, 2010 - PRLog -- Obama is fed up with lenders taking months and months to review HAMP loan modification applications while homeowners struggle to hold onto their homes. The dismal success rate for loan workouts using the federal program has meant that the vast majority of borrowers have not been helped using the government backed home rescue plan. This is going to change as Obama has now mandated timelines and revised approval processes that lenders will be following.

Loan modification help under HAMP will now be determined within 30 days of a participating lender receiving a homeowners complete application. Here is the basic timeline that the Fed announced needs to be implemented immediately:

Written confirmation of receipt of loan modification request within 10 days
Approval or denial for loan modification within 30 days of receipt of homeowners complete application
3 month Trial Modification given to qualified borrowers and at the end of the trial the modification will become permanent automatically.
If denied a loan workout, homeowners will be offered another option such as short sale, deed in lieu or other exit strategy.
This is good news for millions of homeowners who have been getting the run around from their banks-sending and resending the same information over and over again, or being told they are approved one day and then the next week being told they do not qualify. This also means that homeowners will only have one chance to apply-so it is very important to prepare and accurate and acceptable loan modification application the first time.
Loan modification help is available under HAMP-but it is critical to understand just what the approval guidelines are so that you can prepare your paperwork correctly. Successful candidates will know how to fine tune their financial statement and make the necessary adjustments to their budget so that they have the best chance of approval. If you need help figuring your debt ratio, disposable income, new target payment or other calculations, take advantage of the only software designed just for homeowners that does all the required calculations for you automatically. Avoid mistakes and save hours of confusion and frustration. Do it right the first time.

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