Pay off Your Debt at Your Own Smooth Pave through Home Loan Modification Programs
The HAMP program or the Home Affordable Modification Program introduced by the Obama administration has helped millions of people avoid foreclosure of their homes and save their homes. This program aimed at those millions of people who were under major debt and were unable to pay off their loan. Under crisis they filed for bankruptcy under chapter 7 which led to liquidation of all their property. However under Bank of America loan modification program, an individual can avoid foreclosure by filing for HAMP program.
FHA loan modification program is offered by lenders or banks who are in turn been provided incentives by the Government to implement the home loan modification program to needy clients. However, to avoid misuse of this plan by people, several guidelines have been framed based on which an application for Federal loan modification program is accepted and approved. Those standards or guidelines are as follows :
- The house you are living in on which the loan is applicable should be the primary residence.
- The financial situation bothering you should be submitted in details along with your income, expenses, monthly loan amount etc.
- Your previous mortgage loan should have been availed prior to 1st January, 2009.
- The current mortgage payment amount should be equal to or more than 31% of the total or gross income of the family.
Advantages of Applying for Bank of America Loan Modification Program :
- When an individual applies for home loan modification chances of securing a lower rate of interest increases.
- The mortgage loan amount to be repaid on a monthly basis also reduces by 30% of the gross income.
- There is no fees levied to apply for Federal loan modification program and it is absolutely free of cost.
- By understanding the Federal loan modification guidelines clearly an individual can lower the rate of interest on the loan, reduce monthly payments and also take time to get back on ones feet.
- This is the best way for anyone to stop foreclosure as once anyone applies for FHA Loan modification the court permits the creditors to stop taking action against the debtors and stop harassing them with collection calls.
Amidst going through the FHA loan modification guidelines and understanding whether one qualifies for the Bank of America loan modification program, one can also seek the help of a professional attorney for loan modification.
David Simpson is a regular writer on Savedebt12.com, a US based portal, which provides detailed information on Loan Modification, FHA loan modification and FHA Refinance guidelines and other related issues.
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