Federal Loan Modification Program Guidelines

Obama's stimulus package solution for homeowners is known as The Home Affordable Modification or "HAM. " The actual HAM provides financial incentives to homeowners and banking institutions for completed loan modifications. If you qualify, you might be able to modify your existing loan to a lower payment (less than 31% of monthly income) via, lower interest rate, possible longer loan term and perhaps even forgiveness of a portion of the theory. We will discuss the qualification guidelines, and which lenders are approved to provide this stimulus money.

Qualification Guidelines
There are criteria that you need to meet to qualify for a loan modification below this federal plan:
  • You home must be most of your residence.
  • Your loan must have been written prior to January 1, 2009.
  • Your mortgage must be under $729, 750.
  • Your current monthly mortgage payment, insurance coverage, taxes and any homeowner dues, must be a lot more than 31% of your gross monthly income
Approved loan companies

Lenders must be approved to offer these government loan modifications. Not all lenders are on the actual approved list, and more are being added every day. If your lender is not on the checklist, still contact them to see if they happen to be added. This will give you a head begin.

The following lenders are on the list which have signed their formal agreements and are offering the federal mortgage loan modification plan to homeowners:
  1. Aurora Loan Services LLC
  2. Bank of America, NA
  3. Carrington Mortgage Providers, LLC
  4. Chase Financial LLC
  5. CitiMortgage, Inc
  6. Countrywide Mortgage loans Servicing LP
  7. GMAC Mortgage LLC
  8. Eco-friendly Tree Servicing LLC
  9. Home Loan Services, Inc
  10. Nationstar Home loan LLC.