HAMP has expanded it’s reach to a broader swatch of hardships to include more people in the program. Many are confused to how HAMP works and this is the key to getting more people on board so the program can do what it’s designed to do – stop foreclosures.

Many banks have been slow to move on many of the Making Home Affordable loan mortgage modification programs for lots of reasons that may or may not be valid.

One such program included in HAMP is the ‘exit gracefully opportunity’. It’s called the Home Affordable Foreclosure Alternatives (HAFA) Program and this seems to be picking up steam as more and more people learn about this Making Home Affordable HAMP loan mortgage modification alternative strategy from getting out from under your mortgage.

Over the past few months the Obama administration has enlisted a trio of the nations largest lending institutions to service the new mortgage modification program. JP Morgan, CitiGroup, and Wells Fargo have all jumped on the relief bandwagon. Why wouldn’t they? All financial institutions that join the program receive a barrel of incentives. Those who participate receive a thousand dollars per modification. Of course the homeowners get incentives as well. Each homeowner that keeps their account current will receive a thousand dollars a year over a three- year period.

This Mortgage Loan Modification program is expected to keep over 9 million Americans from losing their homes. Lets breakdown how this program works. Basically it is a 2 -part plan. Lending institutions take the first step by lowering monthly mortgages to no more than 31% of the homeowner’s gross income. The other option in the plan would be for the lender to redo the homeowner’s mortgage regardless of the equity. The Obama administration has put up 75 billion dollars to assist with the payment reduction. In addition, the lender must also lower interest rates to no more than 38% of the homeowner’ gross income. All moves to avoid rates hikes that come with adjusted rate mortgages.

Homeowner’s have been concerned about the possibility of their payments getting higher under the new modification. The only way that their payment would increase is if they are currently paying a low introductory rate. If a homeowner is pondering what their payment might be they can visit the payment reduction estimator at http://www.makinghomeaffordable.gov/evaluator.html. Just in case a homeowner is wondering, it would not be wise to procrastinate in the hopes that the mortgage rate will lower. Although the rate is the lowest it has been in many years it has began to inch upwards once again. If you are eligible for this Loan Mortgage Modification program you should take action now.

There is a list of eligibility requirements that must be met for this program. A homeowner in need can visit http://www.makinghomeaffordable.gov/eligibility.html to check eligibility. For some, applying for a Mortgage Loan Modification is a scary proposition. Only the homeowner knows their situation. The alternative may be more frightening. If your a homeowner under distress, examine your options and proceed with caution. Keep up to date with the latest information and advice on home mortgage loan modifications on the larger news stations which are running daily stories on modifying mortgages which may offer some help.

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