A home modification loan is the hot ticket thing these days in real estate news. The most popular modification of mortgage program that is available today is the Making Home Affordable, offered by the government. Unfortunately, long-drawn application processing times for modification of mortgages are the result of inadequate communication between lenders and borrowers; this has made the process of receiving a home modification loan very frustrating. To improve the efforts of lenders to get applications faster and more efficiently processed, President Obama gave a directive to the lenders to quicken the application and the review process for homeowners who qualify under HAMP within thirty days from the date of the initial application for a modification of mortgage.
The new home modification loan guidelines require verification of income from the borrower and provide examples of documents can be accepted as proof of income.
A survey of the modification of mortgage process showed that a high number of rejections under HAMP were due to inefficient application processing as the loan modifications guidelines were not followed. Many families were forced to accept foreclosure due to processing times since at the time of denial there was no additional time to reapply for a home modification loan. RTS Processing follows the Home Affordable Modification Program guidelines diligently, helping to ascertain eligibility and make up an application for a modification of mortgage that has the best chance of approval. The details required for a home modification loan may easily go unnoticed if consumers apply on their own, causing a lot of hassle and delaying the processing of the file.
The new regulations of the Obama home affordable modification program require the lenders to process applications quickly and provide: 1. Written verification of receipt of loan modifications request within 10 days. 2. Approval or denial for loan modifications within 30 days of receipt of homeowner’s application. 3. Three months trial modification given to qualified borrowers which become permanent automatically. 4. In case of denial, homeowners must be offered an option of short sale or a deed-in-lieu to transfer to more affordable housing.
The new regulations for the modification of mortgages ask lenders to process applications quickly and provide: 1. Written verification of receipt of the request for a home modification loan within 10 days. 2. Approval or denial of modification of mortgage within 30 days of receipt of the request by the owner. 3. Three month trial modification given to qualified borrowers which becomes permanent automatically. 4. In case of refusal, the owners should be offered an option of short selling or a deed in lieu or help transferring to a more affordable housing.
The HAMP Home Modification Loan Guidelines help eligible borrowers to start a modification of mortgage for a trial period. The probationary period is to test the ability of the borrower’s ability to make the new mortgage payments. A borrower who is approved and successfully completes three consecutive timely mortgage payments from the trial modification is automatically placed in a permanent home modification loan. The payments on the permanent modification of mortgage are the same as the trial loan modification. The new program guidelines require that income should be submitted to review documents before entering the trial period.
The new rules must use the following data of the borrower prior to the trial modification:
1. For income verification, pay stubs from the two most recent pay periods (self-employed or W-2 income or unemployment income) 2. IRS Form 4506-T, which provides information on the taxes filed by the borrower for the last two years 3. Hardship letter and most recent financial statements (bank statements and a financial spreadsheet)
The new guidelines make it easier to get approved faster and start your home modification loan payments faster. Modification of mortgage loans are the best option for many homeowners who are struggling and want to keep their homes. Qualification and applications are free and the savings can go a mile! Call me today and start saving tomorrow!
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