Are you eligible for the a Home Modification Program?

I have been working with clients all week to see if they are eligible for the HAMP program. Every client I worked with had a different Mortgage company and every company had a different way of handling the Home Affordability Modification Program. Big theme throughout and a test to see if you could move forward with such a program. Look at the gross amount of income on your taxes for 2008, take that amount and times by 31%, then divide that by 12. If that number is lower than your current mortgage/taxes/insurance/hoa fees/second mortgage or equity line payment. You are most likely pre-approved. Now if your situation has changed in 2009, take your gross pay times by 52 (if weekly paycheck) or 26 (bi-weekly). Then do the above calculation. If you fall into this get on the phone with your Mortgage company and ask to speak to someone about the HAMP program. If you want help I can also get on the phone with you to walk it through. I have even become an authorized user for clients so I can move the paperwork through and call for status updates as people are at work.

Now the HARP-Home Affordable Re-Finance Program, I haven’t found this helpful at all yet with clients. The good news they have recently changed the level from 105% to 125%, but you also have to be a Fannie or Freddie loan. The couple cases I have tried, one client owes 158% of what their property owes, didn’t fall in perimeters. The other owes 120% but the orginial loan wasn’t a fannie or freddie loan.

As with the cash for clunkers program, it is a great program if you “fit”, but it can be also very frustrating if you don’t fit but should fit for one reason or another.

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~ by debt2dreams on August 15, 2009.

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