Are you eligible for the governments Home Affordable Modification Program or HAMP? Well, there are a few questions that you'll need to answer.
First, is your home your primary residence? You cannot use HAMP on second homes or vacation homes so your home will need to be your primary residence in order to be eligible.
Second, you need to owe less than $729,750 on your home loan. Any more than that and you are not eligible for HAMP.
Third, are you having difficulty making your house payment? The difficulty could be caused by a significant increase in your loans interest rate, an increase in the payment, a reduction in your income or some hardship such as medical bills.
Did you get your home loan before January 1, 2009? Mortgages originated after that date are not eligible.
Is your loan payment on your first mortgage more than 31% of your current gross income? Your payment would include principle, interest, taxes, insurance and home owner's association dues if applicable. Add those up and then divide your monthly payment by your monthly gross income (payment/gross income). If it is under 31% then you are not eligible for HAMP.
After answering these questions you should be able to tell if you are eligible to apply for a HAMP modification. You will still have to show that you have adequate income to make the reduced payments if your loan is modified.
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