With the recent flood of foreclosures creating much pain for lenders and borrowers alike, the U.S. Government has stepped in with mortgage modifications guidelines which are designed to help ease the burden on taxpayers. These new guidelines include an incentive program which involves bonuses paid to both lenders and borrowers provided their mortgage loans are kept current and all records are kept up to date.

· Mortgage loan servicers get a Servicers Incentive Payment amounting to one thousand dollars per each modification eligible and meeting guidelines with this program. These bonus payments will be given to servicers (provided the borrower remains in the program) annually for up to three years.

· Bonus incentives will also be paid when mortgage modifications occur while using the Hope for Homeowners refinancing program.

·Eligible borrowers will receive Pay for Performance Success Payments which will go toward reduction of the principal balance on their mortgage loan providing the borrower keeps current on their monthly mortgage payments. This involves a one thousand dollar payment each year for up to five consecutive years.

· There will be a one time bonus incentive involving payments of fifteen hundred dollars paid to lenders or investors and an additional five hundred dollars paid to servicers for mortgage modifications provided while borrowers remain current on their mortgage payments. Servicers must maintain documentation and records showing proof that the Trial Period arrangements for payments had been agreed upon while borrowers were less than thirty days delinquent.

To be eligible for this mortgage modifications program the mortgage loan must have originated before January 1, 2009. New borrowers are acceptable until December 31, 2012 and program payments will be provided for up to five years from the date of entry in a Home Affordable Modification program. There will be monitoring provided throughout the life of this program. Any loan modifications can occur only once during this program. Any foreclosure actions will be temporarily suspended while borrowers consider alternatives to possible foreclosure. If this program fails for any reason, then foreclosure action may proceed.

For tips and facts about how to get approved for a Mortgage Modification – Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net

Article Source: http://EzineArticles.com/?expert=Michel_B.

For tips and facts about how to get approved for a Mortgage Modification – Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net
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If you currently have a home loan which you can no longer pay, there is good news waiting for you. The current administration have recently launched the HAMP or the Home Affordable Modification Program. This is a bailout or modification plan which will help borrowers save their home from getting foreclosed. In order to get accepted for this program, you need to be eligible.

Eligibility for such program requires the loan to have been financed on or before January 1, 2009. Aside from this, the mortgaged home should be the principle address of the homeowner. This means that real estate inventors who only rent the property are not qualified.

Your debt to income ratio or DTI also plays a significant part in determining your eligibility. The factor to be qualified is 38%. This can be computed by taking all of your monthly loan debts which include the monthly property tax, mortgage payment, homeowner’s fees, and property tax and insurance fees. That number should then be divided with your monthly household gross income. Once your DTI equals 38% or even below that ratio, then you can qualify for the HAMP. To add, if your DTI is 31%, you can have an extension of up to 40 years in your loan term as well as a lowered interest rate. In some very unusual situations however, the principal balance can also be reduced.

Additionally, the first mortgage is only qualified for such program. If there are any other liens, they will not be eligible. You also must have some proof that you are currently undergoing some financial crisis. This can be supplied by your financial documents such as your statement balance, pay slip, or transaction statement. Another requirement is to submit a hardship letter which determines your current monetary status and the reasons behind it.

Lastly, the maximum principle balance should only be $729,750 so that the first lien will be eligible. Once the above stated criteria fit your current status, you should apply for the HAMP so that your home can be saved.

Even if the criteria for the Home Affordable Modification Program are easy to understand and meet, there are still a lot of banks which refuse the approval of the loan modification. Other banks sign up for another program known as the Obama bailout program while others will stall, lose your documents and even provide terrible customer service so that you will give up. When this happens, you need to be frank and maintain a log of every communication which takes place. This log can be directed to the concern of the manager and even send complaints that have been signed to the higher authorities.

For detailed facts and essential tips about how you can be approved for the Home Affordable Modification Program, visit this simple, easy to understand loan modification guide and resource:http://HomeLoanModifications101.com

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