Unable to make your mortgage payment?
HAMP or Home Affordable Modification Program was designed to assist homeowners with modifying their mortgage loans. This was first implemented in 2009 and will end in December of 2013. The goal is to reduce the borrower’s payment to 31% of their income. This program has saved many borrowers’ homes and allowed them to live in peace once again. Although, there are some catches to HAMP and not everyone will benefit from taking advantage of HAMP. Upside Down CA can assist you with your HAMP needs and keep you on the straight and narrow.
A big item to watch out for with HAMP is a principal forbearance. This is when the lender will separate a portion of the principal and remove it from the mortgage payments. The portion removed is interest free but is due once the remainder of the loan is paid or when the owner chooses to sell or even refinance. Principal forbearance is done for many borrowers; effectively imprisoning them in their homes, as once they choose to sell there is a payment of the forborne amount due immediately. Principal forgiveness is another option available but rarely implemented by lenders.
There are many real estate options available as alternatives to Home Affordable Modification Program. Sometimes a short sale, a refinance, or a foreclosure may be the only option available or a more optimal option for your situation. We are not limited to loan modifications here at Upside Down CA. We are strategically partnered with an experienced attorney and support staff that can also assist you with other aspects of your real estate and/or personal finance needs.