Lots of Americans have been terribly affected by the economic crunch during the past few years. Last year around 1,300,000 Americans experienced difficulty in or were not able to pay their monthly mortgages and eventually lost their houses and suffered foreclosures. Since the government has finally come up with the Home Affordable Modification Program, more and more Americans are now availing of this program to help themselves pay off their housing mortgages.
With this Home Affordable Modification Program, the government is now armed with the capacity of helping out millions of Americans in paying off their housing mortgages. In applying for this program, there are some eligibility requirements that one must satisfy. The first of which is that a mortgage fund should have been availed before January 1st of this year.
The other eligibility requirements that all applicants must satisfy are the following...
- The house mortgaged is occupied by the applicant. This means that the house in question must be the main residence of the one applying for the Home Affordable Modification Program. Those mortgaged properties that are rented out by the owners are not included.
- The first lien is the only lien considered. This means that you can only use your first mortgage in applying for this program. All other succeeding mortgages will not be considered.
- When it comes to the principal balance, only the amount of seven-hundred-twenty-nine thousand seven-hundred and fifty United States Dollars is considered for the home affordable modification program.
Among other things that you will have to look into, you will also have to familiarize yourself with the different possible modifications. These are...
- The requirement for debt service is made lower.
- The interest rates are lower.
- The terms of payment are longer.
- They offer principal forgiveness which simply means the balance is lowered.