Home Affordable Modification Program helps the homeowners to fix their mortgage payments especially to those who are after their payment for mortgage. It offers financial institutions incentives to modify the first mortgage of the homeowner to avoid foreclosures whoever guarantees the mortgage.
The homeowners who do not have money to pay and their house is at risk, they will not pay any late payment fees or even modification charges. However, your lending server may give the option to choose to add the other fees like back taxes to the money that you owe or pay for the other expenses in advance. The lending server primary objective in this program is to reduce the principal value of the house and to give the best way for you to afford the house that you applied in this program.
As a property owner who’s struggling in paying mortgage fees, you can explain your financial situation in a letter at the time of application for this program. Department of Housing and Urban Development will also help you for your loan modification giving you advice what to do and they can be your representative for legal concerns to loan servers or banks at no cost.
The good thing about this program is the incentive part of it. If you continue making payments on time, you will earn points every month that will give you maximum of $5,000 decrease of amount of the principal value of your loan in the next five years.
One of the important requirements is that aside from being the homeowner, the house that you are applying for the Home Affordable Modification Program is your primary residence. It doesn’t matter if you live in a duplex or even if you have four houses, one of them can be applied to the program.