How Do I Know If I am Eligible for a Modification under Making Home Affordable (MHA)

Aug. 29, 2009 - PRLog -- One of the very first questions to ask yourself to see if you may be eligible for a Loan Modification under HAMP is whether your home is:
1.   Your primary residence, i.e. owner-occupant of a one to four unit home; and also have an unpaid principal balance that is equal to or less than:
   1 Unit: $729,750
   2 Units: $934,200
   3 Units: $1,129,250
   4 Units: $1,403,400;
2.   Have a first lien mortgage that was originated on or before January 1, 2009 as HAMP will only modify a first lien mortgage and not a second lien mortgage.  There are many other programs to qualify for if you need to modification a second lien.
3.   Have a monthly mortgage payment (including taxes, insurance, and homeowners association dues) greater than 31 percent of your monthly gross (pre-tax) income; and
4.   Have a mortgage payment that is not affordable due to a financial hardship that can be documented that shows a change in your situation from the original date of the loans inception.

As a homeowner you do not need to be behind on your mortgage in order to qualify for a Loan Modification under the Obama Program or Making Home Affordable.  However, you will need to prove that you are struggling to pay your mortgage payment and document the changes that have occurred.  This could be due to a decrease in income, an increase in expenses, an adjustment to your interest rate, behind on property taxes, to name a few.  Of course, you will be required to provide your income and expenses as well as documentation on the changes in your circumstances of the recent hardship.


All loans modified under HAMP must include an escrow account for payment of future homeowners insurance and property taxes. If your current loan does not include an escrow account, one will be established with the new Loan Modification. The new escrow account may require collection of enough reserves to pay the homeowners insurance and property taxes by the next due date. This reserve amount cannot be added to the modified loan amount and is usually spread over a period of 60 months


Many homeowner ask, how low can my interest rate go if i modify my loan under HAMP.  The Government is providing incentives to write the interest down to as low as 2 percent, if necessary to get to a payment that you can afford. Each homeowner interest rate will only be reduced to equal 31% of the borrower's gross monthly income. Not all homeowners will receive a rate reduction to 2 percent in order to achieve a monthly mortgage payment that is affordable as it is all driven by the 31% gross monthly income ratio.  In some instances, a principal reduction will be taken into consideration.


To find out more about the HAMP program and if you qualify, please contact us at www.CallALMS.com or call us at 877-700-2567 for your free Loan Modification Consultation.

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Our Loan Modifications are all handled by Attorney's and are 100% gauranteed! Loan Modifications can be handled in 47 states with no upfront fees. Our Attorney's are almost 100% successful! They also qualify Making Home Affordable (MHA) or HAMP!