You may have heard how the government bailed
out many large corporations, but what has it done to help the little guy? The Making
Homes Affordable Program is a government program designed to create a set of standardized guidelines
for lenders to use when determining whether a borrower qualifies for a loan modification.
So, how does this benefit you? How do you find out if you qualify? What do you need
to do to get this assistance? Hi, I’m Jim Keaveney of Keaveney Legal Group.
Our practice helps people in New Jersey and Pennsylvania to avoid foreclosure and take
advantage of programs like the MHA to remain in their homes. Would you like to learn more?
Join me as we discuss this program together. The main part of MHA that affects the average
homeowner facing foreclosure is the Home Affordable Modification Program (HAMP). Under HAMP, lenders
receive incentives from the government for modifying homeowners’ mortgages. Lenders are
required to actively inform borrowers about eligibility to participate in the program
and to use a certain value calculation for the home specifically developed for HAMP.
The value calculation is designed to determine whether the lender would still make any money
under the modified loan terms and, if so, the lender is required by law to pursue HAMP
before foreclosure. The program has certain rules for eligibility.
They are: 1. The loans must have originated on or before
January 1, 2009; 2. The loan must be a first mortgage and the
borrower must live in the property or the property is rented or the owner intends to
rent it; 3. The value of the unpaid balance on the
loan must be less than $729,750 (unless the property has 2-4 units);
4. The current principal, interest, property taxes, and homeowner’s insurance payments
for the property must be costing the borrower over 31% of their gross monthly household
income; 5. All borrowers must fully document their
income and must sign an affidavit of financial hardship; and
6. The borrower must not have been convicted of a crime related to a mortgage or real estate
transaction. Not surprisingly, the financial institutions
want to make sure that only those who are actually eligible for such programs are able
to take advantage of them. As such, borrowers must provide a great deal of financial information,
including IRS tax forms, applications for the program, and documentation proving income.
An attorney will be able to assist you in identifying which documents you will need
and how to complete the applications. After approval for the program, it is important
to follow all rules for the newly modified loan. This will include paying on time, providing
any requested documentation, and otherwise complying with any requests by the financial
institution. Closing:At Keaveney Legal Group, we help clients
with their loan modifications everyday. Perhaps you have questions about the MHA Program and
how it applies to your situation. If so, I encourage you to pick up the phone and call
me. You can reach us by phone at 1-800-219-0939 or by email at [email protected]
I’m Jim Keaveney, have a wonderful day!