Home Affordable Modification Program
The Obama home loan modification program has been instrumental in helping millions of struggling homeowners. As per the report, ever since April, 2009 when the $ 75 billion supported Home Affordable Modification Plan (HAMP) went into action, as many as 400,000 distressed homeowners have been granted permanent loan modifications.
The Obama home loan modification program has been instrumental in helping millions of struggling homeowners. The U.S. Department of Housing and Urban Development (HUD) recently released a report that provides the details of the government backed stimulus program. As per the report, ever since April, 2009 when the $ 75 billion supported Home Affordable Modification Program (HAMP) went into action, as many as 400,000 distressed homeowners have been granted permanent loan modifications. And today, borrowers, who have qualified for a permanent HAMP mortgage modification plan, are saving up to $ 500 every month on their monthly mortgage payments.
Totally 1.2 million home makers had been granted trial modifications under HAMP loan modification programs. Usually, the trial phase involves a three month period during which homeowners are required to maintain regularity in paying the monthly mortgage installments. At the same time while the trial modification is on, borrowers need to prepare additional documentation, pertaining to verification of monthly incomes and more, in order to qualify for a Permanent HAMP loan modification. Nevertheless, many homeowners have failed to provide the necessary paperwork before the end of trial phase and hence, were not eligible for a permanent HAMP home mortgage loan modification.
According to HUD, till date about 2.8 million homeowners have been provided loan modifications on their existing home mortgages by various mortgage loan lending companies. The figure seems to be higher on account of the fact that many lenders have provided their own home mortgage modification plans to borrowers who failed to satisfy the requirements stipulated by the Obama stimulus plan guidelines. To monitor the progress of th 
e HAMP program on a monthly basis, the HUD has now started getting reports on HAMP loan modifications from servicers every month. And over the past four months, there has been a dramatic rise in the number permanent loan modification approvals averaging 50,000 per month.
Thus, more than half of the HAMP eligible applicants, who were not eligible for a permanent mortgage modification, had been granted alternative modifications by their lenders. Furthermore, less than 10 percent borrowers that qualified for the federally backed home affordable modification program got themselves into a financial situation where in a foreclosure sale was the only way out. Typically, non-HAMP plans that were offered by lenders have been designed on the HAMP pattern which is government run. In addition, HUD has also pointed out that homeowners who are not eligible for the HAMP, could take advantage of the home affordability foreclosure alternatives program (HAFA) and obtain relocation to housing which is more affordable.
To get more useful information on the HAMP or Bank of America loan modification program guidelines, it is hereby recommended to utilize the professional services offered by reputed online service providers like LoansStore.
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