- Has your financial position changed and you’re struggling to make your monthly mortgage payments?
- Are you behind on your mortgage payments?
- Are you current on your mortgage payments but want to modify your mortgage terms to receive a lower interest rate?
- Are you upside down on your home (i.e. the mortgage balance is more than your home is worth)?
If you have answered “Yes” to any of the above questions, then a mortgage modification may be an option to explore. A mortgage modification is the process by which the terms of an existing mortgage are modified. Mortgages can be modified only by agreement between the bank and the borrower and can occur at any time before the home is sold at a foreclosure sale.
Mortgages can be modified in several ways, including some of the following:
- Reduction in interest rates
- Change in the manner in which interest is computed (i.e. from an adjustable rate to a fixed rate)
- Extension of the loan term (i.e. from 30 years to 40 years)
- Reduction in fees and other penalties
The entire mortgage modification process can be confusing and timely. Banks often have sole discretion with their guidelines and procedures for mortgage modifications. Alternatively, many banks have come under the implementation the Obama Administration’s Making Home Affordable Program allowing for more uniformity in their guidelines and procedures.
What is a Mortgage Modification?
Mortgage modification is the process by which the terms of a borrower’s mortgage is modified by the bank.
Are there different types of mortgage modifications?
Yes, there are different types of mortgage modifications each with different eligibility requirements and terms.
What is HAMP?
The Home Affordable Modification Program (“HAMP”) is a program designed to help homeowners who could no longer make the mortgage payments on their homes modify the terms of their mortgage loans to make it affordable for the homeowner to resume payments and avoid foreclosure on their home.
HAMP - Eligibility
The Following homeowners may be eligible for Hamp:
- The homeowner occupies the house as a primary residence;
- The homeowner obtained their mortgage on or before January 1, 2009;
- The homeowner has a mortgage payment that is more than 31% of their monthly gross income.
- The homeowner owns up to $729,750 on their mortgage loan;
- The homeowner has a financial hardship and are either delinquent or in danger of falling behind.
- The homeowner has sufficient, documented income to support the modified payment.
- The homeowner has not been convicted of a felony, larceny, theft, fraud, forgery, money laundering or tax evasion within the last ten (10) years in connection with a mortgage or real estate transaction.
What is HARP?
The Home Affordable Refinance Program (“HARP”) is a program designed to help homeowners whose mortgage are backed by Fannie Mae and Freddie Mac, who owe more than their homes are worth, and who are not in default, refinance their mortgage loans at the current low market rates. Thus, the homeowner can reduce their monthly mortgage payments.
What homeowners may be eligible for HARP?
- The homeowner’s mortgage is owned or guaranteed by Fannie Mae or Freddie Mac.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31st, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March through May 2009.
- The current loan to value ration must be greater than 80%.
- The homeowner must be current on the mortgage at the time of the refinance with a good payment history for the preceding twelve (12) months.
Contact our Mortgage Modification Team in Orlando, FL
If you are looking for a mortgage modification and you believe you might be eligible for HARP or HAMP please call us today at 407-500-0000! You may also fill out the online form provided on this page or email us at firstname.lastname@example.org and someone will contact you shortly.