How To Get HAMP Tier 2 Loan Modification Applications Approved?
During early March 2012, the White House effected some changes to the HAMP Federal loan modification program for revamping it.
United States (PRUnderground) September 17th, 2012
The new version which is known as the HAMP Tier 2 appears to be promising for homeowners as it seeks to differ from its earlier form in many ways. Borrowers, who may be weighing up their chances of qualifying for the revised Home Affordable Modification Program, need to have a clear understanding about the differences.
The qualification criteria for the HAMP federal loan modification plan have been relaxed to expand the reach of government mortgage relief funds to homeowners who are still struggling to deal with their mortgage debts. The Obama administration expects the changes to increase participation of such financially distressed borrowers. The revamped HAMP schedule, which is known as the HAMP Tier 2, has already become effective from the 1st of June, 2012 and is going to remain in action until the end of December, 2013. But just like its previous version, the HAMP Tier 2 does not apply to GSE mortgages which are guaranteed by FHA, Freddie and Fannie or VA loans. Only non-GSE home loans may be eligible.
Nevertheless, borrowers must first determine their eligibility to get benefited with the HAMP Tier 2 modification process if they are considering getting their mortgages modified through it. To that effect, there may be certain differences in the qualification criteria that apply to the HAMP Tier 1 and Tier 2 versions. Here is some crucial information on the same.
- With HAMP Tier 1 only one mortgage could be modified but with HAMP Tier 2, up to 3 modifications are allowed.
- Even such homeowners who are non-occupants on their homes can modify mortgage loans with the HAMP Tier 2.
- Displaced homemakers, who are members of military, may benefit with provisions of the HAMP Tier 2 program.
- HAMP Tier 2 offers 1 year forbearance assistance to borrowers who are unemployed.
- Under HAMP Tier 2 loan modification eligibility guidelines even those have failed to stay current with the HAMP Tier 1 trial loan modification plan can apply provided more than 12 months have passed.
- To qualify for the revised HAMP, applicants will need to have a Debt-To-Income (DTI) ratio which is between 25% and 42%. Earlier borrowers were needed to have DTI which was less than 31%.
- A new condition stipulates that if a modification under HAMP Tier 2 does not ensure at least 10% reduction in payment of monthly principal and interest, the applicant will not qualify for a HAMP mortgage modification.
The basic eligibility guidelines remain the same. The internet could be the best place to get HAMP Tier 2 loan modification information in case someone is considering getting benefited with low mortgage interest rates and flexible terms. Some of these are being mentioned below to get started with the process for determining qualifications.
- Only loans originating before 1st of January, 2009 will qualify for a loan workout.
- The plan applies to modification of mortgages for family homes between 1 to 4 units.
- Limits will be prescribed for 1 to 4 unit homes regarding the amount unpaid principal loan dues owed.
- Financial hardships have to be well documented and valid reasons must be provided for worsening situation.
While the basic qualifying criteria remain the same, one may still have to learn how to get HAMP Tier 2 loan modification as the procedure requires borrowers to through an application process which is strenuous, complicated and time consuming. Besides, when help is easily available online, it could be important for an applicant to seek it for enhancing his chances of being HAMP approved. Many firms on the internet provide efficient and cost-effective mortgage relief services to guide borrowers in navigating through the HAMP or HARP processes. However, you need to make sure that the firm you have chosen to work with is totally reliable and at the same time enjoys a market reputation for helping borrowers.
LoansStore is a leading mortgage service provider in the United States which has been in business for over seven years. Till date, the firm has helped tens of thousands of borrowers in qualifying for affordable mortgage interest rates and hence, significantly reduced monthly payments. Consumers, who are interested in determining their eligibility for home loan modification or refinancing, can visit their website at HAMP Tier 2 Loan Modification for getting more valuable information.
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