Home Affordable Modification Program
The government of the Unites States of America created the Houston Loan Modification Program in the year 2009.
This program by the government was aimed at providing relief to distressed house owners by reducing their debt or mortgage payments in a manner that the payments turned out to be 31% of their pre-tax monthly returns.
This Houston Loan Modificationprogram did not have all the lenders participating in it. The following criteria were used in determining who was going to participate in the loan modification process and who was not going to qualify.
· The borrower must have gotten his/her mortgages on or before 1st January the year 2009. The borrower must also owe a maximum of $ 729750 on his/her basic residence or any other real estate property owned by the affected party. The property must cost up to $934200 on a dual rental unit. For this case, the government sets higher perimeters for rental properties with more units.
· The borrower must have enough documentation of income which will be used to pay the mortgage in case the loan qualifies to get modified.
· An affidavit of proof of financial hardships must be sought and also be signed by the relevant authorities. This document shows evidence that the borrower has been having a financial crisis as a result of things like illnesses, loss of property or divorce as factors that are prompting the person to seek the modification.
· Income documentation, tax returns recent pay stubs, a list of assets and their values and credit cards must be provided to the lender accompanied by a letter outlining the economic sufferings.
At the moment all this information has been collected and is well organized by Jefferson Legal Group , the borrower can now proceed to call their mortgage servicer and then explain to them that you need loan terms modified.
Effect of loan modification on one’s credit
The New York Loan Modificationprocess has mild impacts on a person’s credit. This is because the government has come up with terms that require the lender to report House Affordable Modification Program to Jefferson Legal Group in such a way that does not eat so much into the involved person’s credit.
Alternatives for New York Loan Modification
There are various ways that can be used to redefine the terms of a loan in case a borrower does not pass the earlier loan modification criterion with the help of Jefferson Legal Group .
They include:
· Locating tenants who will rent a borrower’s home and then use the rents paid to service his/her mortgage.
· The lender can be given the home back by using “deed-in-lieu of foreclosure”
· The home can be short sold here the borrower comes to terms with the borrower to sell the house for less than what is owed to the bank.
· A lender can reduce or suspend the loan payment period for up to 90 days.
Reasons why people seek a loan modification.
· A borrower having less income than he/she intends
· Death in a family or sickness
· Bankruptcy of the borrower
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