Rules to Qualify for the Obama Home Loan Modification Program 2012

Nov. 6, 2012 - PRLog -- The most important step a worried homeowner must take to prevent foreclosure proceedings is to sit down with his lender to see if he qualifies for the Obama home modification loan program 2012. Originally developed to aid 4 million troubled homeowners when it first started up in February 2009, it has, until recently, helped only 1 million. Changes were deemed necessary, and changes were made to the program. Virtually all of these changes effect eligibility requirements, and all of them make it easier for a property owner to qualify for HAMP aid.

Rules and Regulations for Obama Home Loan Modification Program 2012 http://www.credit-yogi.com/foreclosure/obama-loan-modification-HAMP.php

It’s important to understand what, exactly, home loan modification is before going much further here. When a mortgage is modified, it simply means that changes are made to it that make it less difficult for a homeowner to make his payments each month. The HAMP plan offers a way to do this for people at risk of defaulting on their mortgage loans, or who have already defaulted on them. Anyone can apply for HAMP help through a lender that participates in the program.

The changes in the Obama home loan modification 2012 program are very encouraging to those who have already applied for HAMP but were denied. A property owner no longer has to live on the premises he’s asking for the loan modification on, and his debt-to-income ratio can now be less than the 31% required when the program was first introduced. The new HAMP plan will triple lender incentives from 6 to 21 cents for every dollar a lender takes off a mortgage principal to 18 to 63 cents. This significantly promotes lender participation in the program.  The new plan would also enable Fannie Mae and Freddie Mac lenders to enjoy the principal reduction benefit, which they currently do not. Also, if a homeowner had already received HAMP assistance but then defaulted during the three-month trial period required by the program, he may be able to re-qualify under the new rules.

Qualify for the Obama Home Loan Modification Program http://www.credit-yogi.com/foreclosure.php

Credit-yogi, an online marketing company located in Pittsfield, Massachusetts, has more information about the home affordable modification program (HAMP) and there is always someone available to address questions and concerns.