{"id":28,"date":"2014-02-24T20:59:01","date_gmt":"2014-02-24T20:59:01","guid":{"rendered":"http:\/\/keithfenceroylaw.com\/?page_id=28"},"modified":"2014-04-25T19:24:57","modified_gmt":"2014-04-25T19:24:57","slug":"loan-modifications","status":"publish","type":"page","link":"https:\/\/keithfenceroylaw.com\/?page_id=28","title":{"rendered":"Loan Modifications"},"content":{"rendered":"

Loan Modification<\/strong><\/h1>\n

Loan Modification is the process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender with the goal of an interest rate and\/or principal reduction.<\/p>\n

There are various loan modification programs. One of the most well-known is the HAMP program, described below. Other programs are lender and investor specific, in which, the respective entity has its own guidelines to modifying a loan. Please note, not everyone qualifies for a loan modification, but the following HAMP guidelines will provide you an idea to the criteria for a loan modification.<\/p>\n

Home Affordable Modification Program<\/strong><\/h3>\n

According to Fannie Mae, the Home Affordable Modification Program (HAMP), is designed to help as many as three to four million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.\u00a0Visit makinghomeaffordable.gov<\/a> for full information.<\/p>\n

Eligibility Criteria<\/strong><\/h5>\n

Borrower eligibility is based on meeting specific criteria including:<\/p>\n

    \n
  • Borrower is delinquent on their mortgage or faces imminent risk of default ;<\/li>\n
  • Property is occupied as borrower’s primary residence;<\/li>\n
  • Mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.<\/li>\n<\/ul>\n
    Monthly payment adjustment
    \n<\/strong><\/h5>\n

    After determining a borrower\u2019s eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower\u2019s total pre-tax monthly income:<\/p>\n

    First, reduce the interest rate to as low as two percent; next, if necessary, extend the loan term to 40 years. Finally, if helpful, defer a portion of the principal until the loan is paid off and waive interest on the deferred amount.<\/p>\n

    Note:\u00a0 A mortgage servicer may elect to forgive a partial loan principal under HAMP on a stand-alone basis or before any modification step in order to achieve the target monthly mortgage payment.<\/p>\n

    Contact us for more information:<\/strong><\/h4>\n

    If you have questions or would like to discuss your situation, feel welcome to contact us at ph: 773-654-2404 or fax: 773-857-1633 for a free consultation. Se habla espa\u00f1ol.<\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Loan Modification Loan Modification is the process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender with the goal of an interest rate and\/or principal reduction. There are various loan modification programs. One of the most […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-28","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=\/wp\/v2\/pages\/28"}],"collection":[{"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=28"}],"version-history":[{"count":7,"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=\/wp\/v2\/pages\/28\/revisions"}],"predecessor-version":[{"id":405,"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=\/wp\/v2\/pages\/28\/revisions\/405"}],"wp:attachment":[{"href":"https:\/\/keithfenceroylaw.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=28"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}