There has been continuous discussion in the media and among homeowners about the available Obama loan modification programs guidelines and criteria available to struggling borrowers. The most common questions surround the qualifications and criteria for Obama loan modification programs. The Obama loan modification program is also commonly referred to as HAMP.
Obama Loan Modification Program Criteria Qualifications and Eligibility
To understand Obama loan modification program criteria and guidelines, here are some of the qualifications:
1. The home must be your primary residence;
2. The first mortgage loan amount must be less than $729,750;
3. The first mortgage must have been originated prior to 01/01/2009;
4. You must have a hardship or have trouble making mortgage payments;
5. The first mortgage payment (including taxes and hoa) must be more than 31% of your gross income.
If you fit the Obama loan modification criteria and guidelines above, it is possible you will qualify for a permanent home loan modification which may reduce your interest rate and payment substantially.
Process to Request Obama Loan Modification Program and Guidelines
The next step in requesting an Obama loan modification is to submit a HAMP loan modification request to your lender and understand other guidelines and criteria. Although the Obama loan modification program is a Federal directive, the approval or qualification process goes through the current lender (or servicer). Every lender is slightly different, but by and large, all lenders offer the Obama loan modification program. The initial qualification is fairly easy (checklist above), but the process of submitting all documents and information to the lender in the proper format and with all the necessary attachments can be a frustrating and difficult process.
Criteria Challenges in Obtaining Obama Loan Modification Program Approval
After the initial qualification criteria, the guidelines for getting approval for the Obama Loan Modification Program can be quite tricky, time consuming and frustrating. The lender criteria calls for at least the following documents: current and past paystubs, bank statements, tax returns, signed tax forms, and a hardship letter. Additionally as part of the Obama HAMP guidelines, it is necessary to submit income and expense statements often with backup documentation for the items listed. It is very common for lenders to continuously lose documents and keep poor records, so stay organized and maintain copies of everything submitted to the lender.
California Obama and HAMP Loan Modification Attorneys: Guidelines and Criteria Explained
McFarlin LLP attorneys handle all aspects of loan modification for borrowers in Los Angeles, Long Beach, Anaheim, San Jose, Fresno, Stockton, Riverside, Santa Ana and throughout California. Our attorneys understand and can explain loan modification guidelines and criteria and are available to provide you with honest reliable advice at our Irvine office or over the phone. With a legal matter as important as loan modification, it is a very good idea to consider hiring a qualified California loan modification attorney to represent you. Call us today at (888) 728-0044.