The rules for qualification under the FHA-HAMP loan modification program have recently changed. This could be great news for some homeowners that are behind on their mortgages with FHA loans who might not have qualified before.
We talk about modifications quite often here, at Graham Legal, because they often offer the ability for our clients to avoid foreclosure and keep their home. Loan modifications change the terms of the mortgage to make it affordable for a homeowner, who is facing financial hardship, to continue making payments and keep their home. Usually the modifications consist of a lowered interest rate and/or reduction of the principal balance.
There are several qualifying factors that determine a homeowner’s ability to qualify for the FHA-HAMP loan modification, but it’s encouraging to learn that the FHA has loosened some of the restrictions previously enforced. Listed below are some of the recent changes:
Before, a debtor could only have a maximum of 12 months of missed payments; they have extended the limit to 36 months.
Borrowers, who were unsuccessful with their first attempt at modification trial payments under the FHA-HAMP, may reapply if their financial situation has changed.
There isn’t any restriction on the amount of mortgage delinquency.
FHA-HAMP may now consist of Loan Modification/or Partial Claim.
It’s important to remember that there are many other factors that are taken into consideration when the lender reviews your application, thus loan modifications are never guaranteed. However, lenders and servicers are highly encouraged by the government to provide homeowners with viable options. An FHA-HAMP loan modification is only one of several options available. If you would like to discuss your options with a Miami foreclosure defense lawyer, make an appointment with our office for a free consultation.