Exploring Government Programs For Struggling Homeowners

If you are behind on your mortgage loan payments, there are several options available that can help prevent you from losing your home. In fact, if you qualify for the Making Home Affordable Modification Program (HAMP), you may be able to modify or refinance your mortgage in order to make your monthly payments more affordable. But, what does it take to qualify for this program and what type of documentation do you need to provide your loan servicer in order to take advantage of this program?

Qualifying for the Making Home Affordable Modification Program

In order to qualify for the Making Home Affordable Modification Program (HAMP), you need to meet the following criteria:

* The home is your primary residence
* You owe less than $729,750 on the mortgage
* You obtained the mortgage before January 1, 2009
* Your mortgage payment, which include principal, taxes, interest, homeowner’s association dues and insurance, is more than 31% of your gross income
* You are unable to pay your mortgage payment due to a financial hardship, such as that which is caused through job loss or from accumulating excessive medical bills

If you believe you meet all of these criteria, you should contact your loan servicer and see about being placed in the program.

Providing the Right Documentation the Making Home Affordable Modification Program

In order to participate in the Making Home Affordable Modification Program (HAMP), you will need to provide the documentation necessary to prove your situation. Some of the documentation that may be necessary includes:

* Proof of your monthly gross household income, such as recent pay stubs
* The most recent income tax return
* Statements showing the value of your savings and other assets
* Your monthly mortgage statement
* If applicable, information about your second mortgage or any home equity lines of credit you may have
* The balances and minimum monthly payments due on your credit cards
* The balance and monthly payments on any other debt you may have, such as student loans or car loans
* A Hardship Affidavit describing the circumstances that caused a reduction in your income or an increase in your expenses

Exploring Other Government Programs

If you don’t qualify for the HAMP program or you are more interested in refinancing your home mortgage loan, but you are afraid you won’t qualify for refinancing because your home has lost value, you might want to see if you qualify for the Home Affordable Refinance Program (HARP) or the HOPE for Homeowners (H4H) program.

The bottom line is that there are many programs out there to assist those who have handled their mortgage loans responsibly, but who have found themselves in a difficult financial situation. Whether you were a victim of the recession or you have experienced other personal difficulties that have made it difficult if not impossible to pay your mortgage loan payments, you are certain to find a program to help you get back on your feet and recover as well as possible.

Ryan Lynch is in charge of the marketing team for an Austin real estate agency. They specialize in Austin luxury houses, and they help both buyers and sellers of residential properties.