Mortgage Loan Modification Program to Stop Foreclosure and Make Monthly Payment Affordable

There we were, my family and I, preparing to move out of our home of ten years because the crashing economy had caused both my wife and I to lose our jobs within the same year. I blame it on the economy and not myself because we worked in the auto industry where huge downsizing took place and thousands of employees were let go. Thankfully the auto industry is beginning to get back on its feet and I have found employment again, but it didn’t help a couple years ago when I couldn’t afford to pay the mortgage on our house and our lender had threatened to foreclose. It was a horrible time. We had two young children and had everything you could think of for a happy household. This certainly would have been disastrous had we not had the ability to stop the foreclosure.

How did we stop the foreclosure? Through a new program set up by the government to help home owners avoid foreclosure. I would never have known of this program had I not visited a website called credit-yogi.com. I can’t remember exactly, but I think I was looking for credit card advice and happened upon this site which also held expertise in many things debt related. As a result they introduced me to the HAMP government program. HAMP stands for Homes Affordable Modification Program and is designed to allow lenders and homeowners the ability to negotiate new parameters for an existing mortgage loan, as long as that loan was signed before January 1, 2009. Whereas before there was little incentive for a lender to go back on their deal and work something out with you, now the government will financially encourage them to make a new deal. I had little experience negotiating, but the people at credit-yogi.com said they could do most of the negotiating for us if we wanted, or they could introduce us to people in our area that could help. When we finally gathered our materials and presented this possibility to our lender we were surprised to learn that they would be willing to negotiate a new mortgage with us. They said there were benefits for everyone.

• The lender is more assured that they will get their money paid back in full.
• They can avoid a foreclosure and the added expenses of reselling the home, often at a greatly reduced value.
• You will be able to negotiate a new payment plan for your existing mortgage that can be lower in principal, interest rates and monthly payments.

By avoiding foreclosure with  loan modifications we also saved ourselves from the possibilities of having bad credit. We worked directly with out lender and  loan modification companies to work out a new deal. If you are looking for mortgage loan modification help I would suggest starting at credit-yogi.com

Key Points about the Home Affordable Modification Program

The Obama HAMP (Home Affordable Modification Program) program has been very beneficial in helping many homeowners remain in their homes. While not everyone qualifies, there are enough benefits to make it worthwhile, and there is little doubt the need still exists.

Key Points to Consider

There are several key factors you need to consider about the Home Affordable Modification Program before you make any kind of decision. Some of the common provisions of the federal program include the following:

• Homeowner must have purchased the home on or after January 1, 2009
• Homeowner must be able to provide documentation he can make the new modified payments
• Homeowner must be seeking modification due to financial circumstances such as reduction in income or loss of job
• Homeowner cannot have any convictions for fraud related to mortgages or real estate in the last ten years
• Lender must be able to prove it will increase its income after modification

There are more details regarding the HAMP program available, but these are the most common ones. To speak to an expert about modification visit Credit-Yogi.com and fill out the online form. One of our experts will be in touch with you shortly.

Choosing Modification as an Option

There are actually two types of home mortgage loan modifications: federal subsidized and private. While the federal program is more beneficial because of the limitations on payments (thirty one percent of income after federal subsidy compared to thirty-six percent with private modification), it helps those who do not qualify for the federal program. When there is a choice between choosing private modification and facing foreclosure, it’s easy to see which choice provides the greatest advantage.

Choosing a Company

Once you make the decision to enter into modification, you will need to choose a loan modification company. While the federal program may offer limited selections, you still want to take the time to conduct research in order to choose the company that will meet your needs the best. Of course, you will have many more lenders from which to choose with private modifications, but you will also need to do more extensive research since there are no government regulations in place for these programs.

There are more details regarding the HAMP home loan modification programs program available, but these are the most common ones. To speak to an expert about modification visit Credit-Yogi and fill out the online form. One of our experts will be in touch with you shortly.

The home affordable modification program is a godsend for those who are having trouble making mortgage payments and are either facing foreclosure or are in danger of doing so. The Obama HAMP program was created to help homeowners remain in their homes in spite of economic conditions that made it difficult. Home mortgage loan modifications are certainly not the answer for everyone, but with the right loan modification company many more people can hold on to their dream of home ownership.

Qualify for the HAMP Government home Loan Modification Program

Many people in the current state of the economy are seeking mortgage loan modification assistance. The one thing you have to keep in mind is if you are facing foreclosure, time is crucial. You don’t want to wait until the last minute to begin researching.

Researching Modification Services

Are you having trouble making your mortgage payments because of circumstances beyond your control? Have you just found you will soon be out of a job? These are certainly circumstances that may indeed qualify you for the HAMP government program. In order to qualify for this and other similar programs, you need to meet certain criteria:

• You must be unable to make your current mortgage payments because of a substantial increase in expenses, reduction in income or unemployment.
• Must be able to prove you can make the payments after modification
• Must have purchased the home prior to pre-defined government regulations
• Lender must be able to prove it can increase its profits after modification

Of course you can also locate a private mortgage loan modification program, but the payments are likely to be higher since private programs allow up to 36 percent of your income for payments compared to only 31 percent for the HAMP program. For more information about HAMP and other loan modification programs visit credit-yogi.com.

Participation in the HAMP Program

Don’t hesitate to consider the government affordable mortgage home modification program if you’re looking to lower your payments. Sure, there are private programs, but if you can qualify for this one, why bother? Of course, you have to remember not all lenders have to participate—only those who offer government-insured mortgages must participate. So what? There are plenty of available lenders that participate. I used it myself after finding out how much of a difference it would make in my monthly payments. In addition, the government program offers incentives for both lenders and borrowers: the former to encourage participation and the latter to make the new payments on time.

When to Apply

One of the most important things to remember about mortgageloan modification services is they can sometimes take up to a year for the modification to go through. For this reason you want to make sure you put in your application as soon as you realize you are having problems making your payments—or even if you anticipate that you may have problems as in the case with an anticipated lay off or decrease in pay in lieu of a layoff. The sooner you contact your lender and discuss your options, the better your chances are of the lender being willing to hold off on a foreclosure and wait for your modification to go through.