HAMP Helps With Fallen Home Value
There are many programs that fall under the umbrella of HAMP loan mortgage modification programs. They are designed to help you with fallen home values. The economy has played a huge part in many homes being worth less than the buyer owes on them. This makes it virtually impossible for them to get a second loan or to refinance under traditional guidelines. That is because you must have equity in the home to protect the lender from default and them being out the cash you owe them.
Exploring the various Making Home Affordable HAMP programs though can help you to see some light at the end of the tunnel. There are several opportunities here that you can look at. Finding the program that best fits your needs and that you are eligible for is important. This type of relief can help you to build some equity in your home. Many of these programs are also designed to help you with reducing interest rates and therefore also reducing your monthly payment obligation.
HARP
The Home Affordable Refinance Program (HARP) is offered to those that are current on their home loan at this time. However, they want to reduce interest and to reduce payments so that they aren’t getting the squeeze as hard with their budget. Applicants must live in this home for at least half of the year. They also must have been denied a refinance mortgage due to the value of their home being less than it was in the past so they don’t have enough equity.
FHA Short Refi
There is also the FHA Short Refi for borrowers that have a negative amount of equity in their home at this time. They must be current on their mortgage payments to be eligible. The changes in the economy and home values in their area must be the reason why they owe more on their home than it is worth. The lenders can negotiate a new loan amount that isn’t more than 97.75% of the value of the home at that point in time. This means the owner will have some equity in their home at the time of the refinance.
FHA2LP
This is the Treasury/FHA second lien program. It is designed to help those that have a second mortgage that they are having a hard time paying due to the economy. This loan can be negotiated with the lender. If there is a first lender that is different then the two lenders can work as a team to negotiate the new terms. It is possible for the second loan to be absorbed into the first one. This means only one monthly payment and savings with the rate of interest.
PRA
With the Principle Reduction Alternative, the fact that you owe more on the home than it is worth can be discouraging. Some people leave the home and take the loss than to continue paying on it. The lenders lose this way so they work to offer some solace in these tough economic times. The PRA can help by negotiating the overall amount that is owed on the loan.
This makes it possible for someone to have equity in their home. Then they are going to have a vested interest to continue to make those payments. The amount of deduction on the debt will depend on the location of the home. It will also depend on the current market value and what the debt happens to be on that home.
HHF
There are some markets out there that have been hit much harder than others due to the economy. The HHF program is short for the Housing Finance Agency Innovation Fund for the Hardest Hit Housing markets. There are many different guidelines for this program depending on location. Finding the specifics that pertain to your area is very important so you can see if you would qualify or not. If you live in an area where the value of homes has significantly dropped due to the economy, it is certainly worth checking into. This is a very powerful loan mortgage modification help program. Go to HAMP Get Help with Fallen Home Values.