Changes to the Loan Modification Program (HAMP)

By
Real Estate Broker Owner with BROKER of Green Realty Properties® - 954-667-7253 BK3175566
http://actvra.in/Qhn

HAMP loan modificationThere were lots of changes last year to many of the government programs available to homeowners that are in over their heads with their underwater mortgages. The Home Affordable Modification Programs (HAMP) is no exception and clients are still calling with questions because they are unsure of the program's guidelines. Below is a list of changes to HAMP that took effect on June 1, 2012.


1) Lower Debt-to-Income Limits: The new guidelines allow borrowers to lower their monthly mortgage payment to as little as 25% of their gross monthly income. In the past, the number was 31% of the gross monthly income. Big difference!

2) Broader Debt Guidelines: Before, there was a short list of the types of debts that the lenders took into account when evaluating the borrower's financial hardship, and all were linked to the 1st mortgage. They are now allowing 2nd mortgage costs, medical bills, etc. to be taken into account.

3) Rental Properties Eligible: Landlords who are struggling can now take advantage of this program, where they weren't eligible before. Properties do not have to be occupied to qualify, and a single borrower can qualify for loan modifications on up to 3 properties.

4) Repeat Modifications Allowed: Before these changes, you had 1 shot to get HAMP. If you couldn't keep up with your payments, they would kick you out of the program and you could never reapply. Now, borrowers can reapply after 12 months from their default have passed.

5) Minimum 10% Reduction: Under the new guidelines, all modifications under HAMP must reduce the mortgage payment by at least 10%.

6) Principal Reductions Encouraged: New incentives are being given to encourage lenders to allow principal reductions where the home is underwater.

 

These are pretty big changes! I'm generally weary of modification based on many  stories I've heard from my short sale sellers, but I'm optimistic that these changes will be positive and more homeowners can modify and stay in their homes.


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If you or anyone you know need help Selling or Buying a Home in Broward & Miami-Dade Counties, please don't hesitate to call me at 954.667.7253

 

Help lots of people and have a great day!

Patty Da Silva, CDPE©, RESS®, AHWD®, e-PRO®, GREEN, CFS, TRC, RSPS

BROKER - REALTOR® Serving South Florida ::: 954. 667. SALE (7253) ::: Green Realty Properties®

Visit www.WeLoveSouthFlorida.com for SouthEast Florida's best properties.

 

 

Copyright © 2008 - 2013 By Patty Da Silva, CDPE©. All Rights Reserved.

Legal Stuff: This article (Contents) reflects the opinion of the author and it is not to be considered legal advice. The author is not an attorney or a CPA. If you are in need of legal or tax advice, it is recommended that you to contact a trusted professional advisor.

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Re-Bloggged 5 times:

Re-Blogged By Re-Blogged At
  1. Sarah & Lester Oswald 02/02/2013 05:34 PM
  2. Pamela Seley, REALTOR® 02/03/2013 10:56 AM
  3. Dennis Hearing 02/03/2013 08:53 PM
  4. Roy Kelley 02/04/2013 10:33 AM
  5. Charles Stallions 03/03/2013 02:51 PM
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Topic:
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Rainer
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Chris Lewis
Front Royal VA Home Sales
Gracious Living Realty

These changes should be very welcome and will hopefully help more people to stay in their homes.  Unfortunately, some banks just won't do anything at all to help their borrowers.

February 03, 2013 02:00 PM
Rainmaker
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Jane Peters
Connecting you to the L.A. real estate scene
Power Brokers Int'l

This is a great list of the HAMP changes, Patty.  Things are looking up, and hopefully this will stop many, many foreclosures and short sales.  Good news for those struggling.

February 03, 2013 06:52 PM
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Praful Thakkar
Andover, MA: Andover Luxury Homes For Sale
Keller Williams Realty

Patty, there are very important changes - including one for rental properties. Hopefully, this will help some of our clients avoid the unwanted situation.

February 03, 2013 09:16 PM
Rainmaker
1,759,871
Roy Kelley
Retired Real Estate Broker, Maryland Blogger

This is very good information for mortgage borrowers that need loan modifications.

Have a most productive month.  Congratulations on your endorsement by Kristin Hamilton.

February 04, 2013 10:27 AM
Rainmaker
1,238,536
Charles Stallions
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.
Charles Stallions Real Estate Services

Do they really want it to work this time, is #6 or 10 I can't keep up. I have only known two people of the 30 or so that applied that got help and even they after a short time realized it wasn't any help and short sold their home.

February 26, 2013 09:09 AM
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Patty Da Silva, Davie, Southwest Ranches Cooper City, Plantation, Weston, REALTOR

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