What Are the HAMP Guidelines?

If you live in The United States and are the owner of a home, then you probably would have heard about President Obama's Home Affordable Modification Program called HAMP for short. Actually it is one of the new president's plans to help American people who own homes and who are striving with great difficulty to pay their mortgage payments. It more or less prevents from people becoming homeless. Practically everyone knows what a home loan modification is, but HAMP is a something that is rather new and beginning to catch the attention of people only now..

Before you apply for the HAMP loan modification plan, ensure that you do your home work and know about the nuances of the scheme, because if you do not learn what HAMP is all about there are more chances of your application being rejected both by the lenders and the banks. The main aim pf the HAMP program is to help home owners with affordable and sustainable repayment terms so that it will help them steer clear of a foreclosure.

Some of the main points that you need to know when applying for a HAMP loan modification are:

• That the loans are on primary residences
• The loan should have started before 1^st January 2009
• The loan amount should be less than $729,750 for single unit properties and more for 2-4 unit properties
• What you are presently paying is over 31% of the overall monthly income inclusive of principal, interest, taxes, insurance and dues
• And you have to see that a financial crisis situation is documented

To apply for the loan the first thing you would be required to do is to contact the lending company and ask whether you are eligible for HAMP and to be considered for it. Get and sworn statement that states that you are in dire financial difficulties and you also have to write a Hardship Letter. See that you have ready your fiscal statement with all information about your income and the expenses that you incur. Have a borrower's statement with you. Ensure that you have proof of your salary pay checks, tax return slips, award letters, income of your roommate etc. you will also be required to submit a bank statement for a minimum period of two months.

To sum it up you have to prove to the Government that you have been facing a severe financial crisis and that certain circumstances have made it extremely difficult to continue your repayment.

In order to qualify for HAMP you have to be living in your home; it should not be rented or used for any other purpose. The Federal Government has a set of usual procedures and guidelines using which the financial institutions qualify the home owners. You main objective should be to really understand the guidelines and provide precise information to show that you are eligible for HAMP loan modification as per their guidelines.

You can find a lot of free information on loan modification on the net. It is always advised to do a good research before picking any provider. Click here to know more about HAMP Guidelines