Only people who are suffering from specified extreme financial hardship may be eligible for a federal home loan modification. This has been difficult for many individuals who don't meet the financial hardship requirements but who nevertheless are having a hard time paying off their mortgage. Nevertheless, you should be aware of the requirements before attempting to apply for a federal home loan modification.
The recent federal loan modification program is known as HAMP, or the Home Affordable Modification Program. This program has a number of eligibility requirements - only certain individuals, properties and mortgages may be modified under HAMP. When it comes to hardship requirements, HAMP can be difficult to understand. Consult with your loan modification attorney before you go forward with a HAMP application.
The hardships considered by HAMP can be lumped into a few categories, including:
What all of these have in common is that they can all be tracked and cataloged with official paperwork showing that you are less able to pay your mortgage now than you were when you first signed up for it. This is important to show to your lender and to the federal agencies helping to oversee and streamline the process. A good home loan modification lawyer can help you streamline it even further by helping you with all the forms and documents you will need. For employment change, you will need copies of W-2s and pay stubs. For business failure, you will need internal budget reports. For loss of rental, you will need copies of past lease agreements and receipts for rent payment.
Consider your proof of eligibility for federal loan modification like a tax audit. The federal government wants to help you out, but you have to show that you truly need it. By the same token, however, you have to do so quickly, as the federal requirements are that you not miss a single mortgage payment. You need to ensure that you meet all the eligibility requirements, gather all the paperwork and apply for a loan modification all within the span of a month. This means that consultation with a lawyer is even more important. Contact a home loan modification lawyer today!