How To Qualify For Loan Affordable Modification Plan

The financial crisis during the past years has left a negative impact to the global market. The United Sates economy is one of the affected and disturbed particularly its housing and real estate industry. Many homeowners are not able to pay their current mortgage payments due to mass layoffs and fall of the market value of their home. The crisis left many homeowners longing for a saving hand. Thanks to the Obama plan where it established the Making Home Affordable Program.

One of its major programs to assist the homeowners is the Home Affordable Refinance Plan where it aimed to assist those distressed homeowners who do their best effort to stay current their mortgage payments yet they failed because of the financial crisis. There are requirements to qualify for this program under the Obama Plan.

If despite effort to qualify under the Home Affordable Refinance Plan (HARP) worry not as you can still be assisted to pay your home mortgage payments by availing the benefit of the Home Affordable Modification Plan or what is commonly called as the HAMP. This program is intended to those homeowners that do not qualify for the HARP program under Obama Plan. This plan intends to lower the interest of the home mortgage they agreed and signed with the mortgagee. You must qualify for loan modification plan to avail of this benefit.

To qualify for loan modification program you must possess all these requirements stated below:

* First, the home mortgage modification program applies only to first mortgage on your primary residence. You qualify for this program if what you will apply is the first mortgage of your official residence and not the second or subsequent mortgages.

* One of the most important requirements to qualify for loan modification is perhaps the date of the start of your mortgage which should be before January 1, 2009.

* If you mortgage a single family home, one of the requirements to avail the benefit of Home Affordable Modification Plan (HAMP) is that you must have an unpaid balance that is equal or less than $729,750.00.

* One of the important requirements to qualify for loan modification program is that you have trouble paying your home mortgage payments due to financial hardship that is either you have had increased in mortgage payments or that your income has been reduced. There are other financial hardships that you can reason out to qualify for this home mortgage modification plan all you need to do is to submit an Affidavit of Financial Hardship to substantiate your claim.

* Another important requirement to qualify for loan modification plan is that your monthly home mortgage payments must be more than 31% your gross monthly income after tax.

Aside from these important requirements, it is also essential that you must successfully complete a three-month trial period to complete the modification deal. After your three-month payment of lowered home mortgage interest, you can continue paying the same lowered rate for five years depending on your terms. Should you are in foreclosure process and you qualified for this program such process will be stopped. This is how beneficial this program is to the homeowners.