Obama Making Home Affordable Plan Relaxed For Borrowers – Know the Changes

Aug. 17, 2012 - PRLog -- In March, 2012, the Obama administration announced sweeping changes to the home affordable modification guidelines in a bid to expand its reach to millions of homeowners who are still struggling to deal with their mortgaged debts. The new relaxations in qualification criteria, effective from 1st June 2012, are likely to benefit tens of thousands of homemakers who are facing troubles with their mortgages. Importantly, the HAMP, the HAFA, the 2MP and the HAUP plan which are part and parcel of the MHA schedule will now be much easier to qualify for than ever before. Therefore, it is essential that borrowers knew how the changed rules and regulations are bound to have an impact on their prospects of getting qualified.    

The new changes in Obama loan modification qualifications with HAMP, which are already in effect, are as follows:

1.  Both rental and primary residences could be now eligible for a loan workout.
2.  Debt-To-Income (DTI) ratio of applicant has to be between 25% and 42%.
3.  Borrowers with more than one family home but less than 5 units can apply.

For home affordable foreclosure alternatives plan HAFA:

1.  Rental as well as residential properties may be eligible but with certain restrictions.    
2.  In case of rental properties, tenants could be eligible to receive relocation assistance.

For More Information Visit: http://www.usloanz.com/home-affordable-modification-progr...

For the second lien mortgage modification plan 2MP:

1.  Just like the making home affordable modification program HAMP, both primary resident and rental property owners can qualify but there may be few conditions. Remember, the 2MP works in tandem with the HAMP program to help borrowers in reducing their monthly mortgage payments and save homes as well as money.  

For the home affordable unemployment plan (UP)  

1.  Anyone can be considered whatever may be the current level of monthly installments.
2.  Only HAMP eligible applicants may be eligible for securing benefits offered by UP plan.
3.  Forbearance may be granted for 1 year during which applicant may find a job to avoid possible home foreclosure.

Qualifying for any of the MHA program options has never been easy without expert home loan modification help since it is difficult to interpret the eligibility guidelines and understand the process requirements that apply to various MHA variants. Besides, for improving chances of getting approved for the HAMP, HAFA, and 2MP or UP program, borrowers could be required to prepare and furnish correct as well as accurate documentation. Only specialists who are well versed with the type of paperwork needed may prove to be the best guides. Hence, applicants must make sure that they seek expert advice.  

USLoanz is a leading mortgage service company in the United States which has been in active business for the past seven years or even more. Over the years the firm has helped borrowers to successfully modify or refinance their mortgages and save homes from getting foreclosed. Customers, who are interested in determining their eligibility for loan modifications, principal reductions or home refinancing, can visit its website at www.usloanz.com.