There are some rule changes that new applicants should be aware of which actually come into effect on June 1st. Servicers now require upfront documentation before they can initiate new trial modifications and in practice that means they have been making that request since March 2010. The treasury is monitoring service performance to ensure the borrower demand is met and that modification requests are reviewed in a timely manner. This contradicts most reports from real people on this aspect of the HAMP service where the biggest complaints have been of slow responses and lost paperwork.

Servicers are stating that the most common causes of cancellations include missed trial payments and incomplete or unverifiable documentation. So you can see that getting the documentation in up front for verification should improve the efficiency of the service and ensure eligibility before the process is initiated. As for missed payments, well that is why this criteria was introduced, people have to demonstrate that they can meet the new payments before a permanent loan modification is offered.

There are statistics now available that show servicers who started trials with verified documents generally posted higher conversion rates. This is as opposed to accepting stated incomes, i.e. those that relied on the borrower to disclose their income and didn’t verify the accuracy of those statements before starting the process of loan modification. The figures for the 4 largest servicers using stated income as a basis for trial starts is a less than 30% conversion rate.

This certainly begs the question of whether people may have been overstating their income to try and get on the program, because if they have then it looks like that has seriously back fired on them, to the tune of 70% of applicants in the case of the big 4.

As an aside, it is probably worth knowing that the HARP Home Affordable Refinance Program is due to end on the 30th June 2011, so if you were considering looking into this as an option you are probably going to have to make a move on it pretty soon.

For the full report on the HAMP latest news you can use this link.

The number of permanent modifications that have been approved by the servicers but are still waiting to be accepted by the borrowers has also risen to 91,800 from the previously reported figure of 76,000. The number of homeowners that have received offers for trial modifications is still around the 1.3 million mark which is around 34 to 45% of the final goal which needs to be reached by the end of 2012. A further 72,000 trial modifications commenced in February.

The cancellation figures are pretty low, for modifications converted to a permanent status only 0.9% have been canceled and for all modifications started the number is 8.2%.

A benefit of completing 1 years worth of on time payments is eligibility to earn up to a further $1000 which could be applied to the outstanding mortgage balance, which would further reduce the capital amount owed.

Mortgage Refinancing

Mortgage refinancing through the Home Affordable Refinancing Program is due to close in 3 months in June of 2010. It is reported that over 4 million borrowers with GSE mortgages have been allowed to refinance with average savings of $150 per month which represents savings of more than $6.8 billion in the first year.

You can download a .pdf of the full report here Make Home Affordable

Related Blogs

• Refinance Mortgage Calculator – A Valuable Personal Finance Tool – Mortgage Calculator @BasicMortgage.Net
• Best Mortgage Financial literacy Refinance Rates
• Qiao Xing Mobile Communication Co., Ltd. Announces Cancellation of the Acquisition of a 40% Interest in Eversun Technology Co., Ltd. | Press Releases @ Your Story
• Robert Ebert Dishes On Cancellation And Possible New Show – MashCeleb
• Obama the Madman: Ordering Banks to Slash Mortgages | The Lonely Conservative
• Google’s fans and foes in China trade barbs – World Blog – msnbc.com
• Refinance Mortgage With Bad Credit | Whalehook Loans
• Congress On China: Google Gets A Big Wet Kiss. Microsoft Is “Enabling Tyranny”
• Eastchester residents participate in benefit | Bronxville, Scarsdale and surroundings
• Robert Ebert Dishes On Cancellation And Possible New Show | PerezHilton.com

The press release states that in January the number of permanent modifications nearly doubled over the previous month and that over one million trial modifications have started from a total of around 1.3 million that have been offered. Once the trial period is passed the loan modifications are then converted to a permanent arrangement so the number of permanent modifications is set to rise significantly, assuming people get through the trial period.

So, based on this information, the news coming from the Home Ownership Preservation Office is that the Home Affordable Modification Program (HAMP) is doing its job. Struggling families are getting the help they need, they are paying less each month for their mortgages and there are signs that the housing market is beginning to stabilize.

Of course HAMP is just one part of the stimulus package and it was further stated that with all the other initiatives being progressed i.e. support for lower mortgage rates, access to credit, tax credits for home buyers and so on, that more than 4 million have refinanced their home mortgages to more affordable levels. They also state that interest rates are at a record low and that home prices and home sales are on the rise again in an economy that is growing.

More than 940,000 home owners are said to have been helped by the Home Affordable Modification Program, although the average saving is now said to be around $500 per month, a little less than the previously quoted $550 average; but still pretty impressive all the same. As is the quoted figure of an aggregate saving of $2.2 billion. The overall program goal is said to be help for 3-4 million home owners and is considered to be on target given its finishing date of 31st Dec 2012.

Another point worth noting is that the required documentation for the (HAMP) has been streamlined making the process for applying a little easier. Also with more mortgage providers subscribing to the program it is stated approximately 89% of eligible mortgage debt outstanding is covered by the HAMP participating providers.

The other significant  part of the Make Home Affordable Progam is the Home Affordable Refinancing Program (HARP), however anyone thinking of applying for this program needs to be aware that it finishes in June of this year (2010).

You can get a copy of the full  Making Home Affordable Program report in .pdf format via this link.

Related Blogs

• Nationwide Home Mortgage Loan Company » Home Mortgage Loans Online
• Mortgage foreclosure sales increasingly being delayed as federal program … – Finance and Commerce
• mortgage underwriting checklist | Home Mortgage Advice
• Time to buy house may have arrived
• Five Methods To Make Your Mortgage Payment Lower | City's Loan
• Basic Requirements Needed to Receive a Mortgage | Agent Builder Blogosphere
• Obama Subsidized Mortgage Modifications Rise
• Georgia Highlights Release Of K-12 Common Core State Standards | Gov Monitor
• ‘Call of Duty: Modern Warfare 2′ Stimulus Package Coming to XBox 360 | The Flickcast
• Incentives for Physicians with stimulus package

Recent information now states that the maximum loan amounts for 2, 3 and 4 unit homes has been set as follows: -

• $934,200 for a 2 unit home
• $1,129,250 for a 3 unit home
• $1,403,400 for a 4 unit home

This latest clarification helps define exactly what level of loan is considered acceptable for people who have more than a single unit property, other criteria remains the same including the need for the mortgagee to be resident in at least one of the units as his home.

The first thing your loan servicer will do to see if you are eligible for the loan modification program is establish if the loan you have meets the terms for loan modification and if it does:

They will ask about your current income, what assets you have, if any, and any ongoing expenses. What they want to know is whether you will be able to make any new payments that will be due after loan modification by understanding your specific circumstances. Anything you tell them will eventually need to be supported by documented evidence i.e. tax returns, pay stubs etc.

They will also need to establish that your monthly first lien mortgage repayment does not exceed 31% of your gross monthly income.

If you get this far they will add past charges (any tax, interest, insurance and costs that your lender paid to 3rd parties on your behalf to the loan balance, effectively consolidating your debts into the mortgage balance. Note this does not include late fees, charges you have received as a result of being late on payments, these must be written off.

They will then calculate the interest rate required to bring your payments to a maximum of 31% of your gross monthly income.

Then there will be a value test to establish if the cost of the loan modification is less costly for the investor than the other option of not modifying the loan. The government’s incentive payment is also taken into account when applying the value test and people who have a lot of equity or whose incomes are very low compared to their home value are unlikely to pass this test.

Assuming you make it this far the next hurdle is to make the first 3 months of payments at the new repayment level. If you do this the loan modification is then made a permanent arrangement that will keep your repayments at a fixed rate for 5 years after which it will be capped at a  low rate for the life of the loan remaining.

You will of course have to sign the modification agreement and associated documentation attesting all information is true and accurate. Any false declarations will be a violation of Federal Law which is a serious offense so make sure you are upfront and truthful otherwise be prepared to suffer the consequences.

Obama’s Stimulus Package has 2 main components:

1. Refinance

2. Loan Modification

Let us discuss each one of these components in detail:

1. Home Refinance Stimulus Package

· In this program the two most powerful mortgage lending agencies of the government Fannie Mae and Freddie Mac would refinance the home loans of all the owners who owe much more amount to the bank than the actual value of the house. The only condition for this package is that the mortgage must be a guaranteed one by Fannie Mae and Freddie Mac, and then even if you are strong enough to pay the entire extra amount, you can gain advantage of the program.

· But there is one major condition joined with refinance stimulus package and that is; the offer is only valid for the properties which are used for residential purpose. Any property which is lying like a building and no one is living inside, will not qualify for Obama’s home refinance stimulus package.

2. Loan Modification Stimulus Package

· There have been special incentives that Obama’s government is going to provide to all the lenders for doing loan modification on the existing home loans of the borrowers. According to this program, the homeowners can get rid of foreclosure by getting it done. The main features of this program would be; interest rate would be reduced and it can go down to 2% only, tenure of the loan would be increased to reduce monthly payment amount and borrowers will get waiver of late fees.

· With loan modification, lender will also take care of the total monthly payments that a borrower is making and it would not increase than 31% of the total monthly gross income.

To know more about Home Refinance Stimulus Package and to check if you qualify

Click Here –> Loan Modification Help

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure.

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here –> Federal Grant For Homeowners

FREE Trials are for a limited time only, so get yours today.

Article Source: http://EzineArticles.com/?expert=Luke_Cambell
http://EzineArticles.com/?Home-Refinance-Stimulus-Package—Obamas-Stimulus-For-Mortgage-Refinancing-and-Loan-Modification&id=2213316

The first general rule is that you should be struggling to make your mortgage payments if you are meeting your mortgage payments comfortably then you are not going to qualify. So what exactly do the stimulus package rules say for loan modifications: -

• You have to be in residence of a single family home
• Your total repayments including capital repayments, interest, tax and insurance must be more than 31% of your gross income (from March 2008)
• Your mortgage balance must not exceed $729,750 for a single unit but for multiple units the amount can be up to $1,403,400 for the maximum 4 units
• Your mortgage pre-dates the 1st of January 2009

What you should also know: -

The scheme ends on the 31st of December 2012

Not all the mortgage lenders are participating in the scheme, despite there being incentives in place to encourage them to do so.  Also if you are trying to secure the deal on a home that you have bought as an investment and it is not your primary residence then you will not qualify.

Some loan agreements and financing preclude you from taking part in the scheme and ultimately it is the loan provider that decide whether your particular circumstances are suitable for the scheme or if offering you the loan modification is not in their best interests or the  best interests of their investors. Which means in a nutshell that getting on the scheme is not a given even if you meet all the other qualifying criteria.

Advantages over the mortgage refinancing option:

• it is unlikely that you will be required to go through a new credit check
• processing the application should be much quicker than the mortgage refinancing option.

This is the 2nd of 2 prongs of  Obama’s initiative on giving aid to people facing financial hardship over home ownership, the option will not suit everyone and any changes to you current arrangement should be carefully considered and the proper advice regarding your specific circumstances should be taken into account.

For the mortgage refinancing details please refer to my previous post.

A Wells Fargo loan modification is easier now for distressed borrowers with the Obama federal plan. This government loan workout offers the opportunity for millions of homeowners to reduce their interest rate and achieve a low affordable monthly mortgage payment. Do you know how to apply for a Wells Fargo loan workout using this plan?

Even if you have already applied for a Wells Fargo loan modification and been turned down, or are still awaiting your answer, you can ask to be considered for the Obama federal government plan. The approval guidelines are strict, but if you know a little bit about how to complete your paperwork properly, you could have a good chance of getting:

1. Your interest rate reduced to as low as 2%
2. The loan term extended to 40 years
3. A portion of your principal balance deferred

Some or all of the above options are available to qualified borrowers to arrive at a new, modified payment that equals 31% of your gross monthly income. A Wells Fargo loan modification using the Obama government plan offers the same options to all borrowers and there is no negotiating needed-either you qualify or you don’t. Once you learn a few simple tips to make sure you complete your loan modification application forms properly, you can work directly with the bank to get the new loan you need.

The Treasury Department has warned homeowners against paying anyone to apply for this plan, stating that free counseling is available through the HUD website. The counseling centers explain what programs are available, but they do not help you complete your application. So this does mean however, that you can just throw your paperwork together and hope for approval. Successful borrowers will have taken a few hours to learn what they need to know to prepare their application so that it will fly through the approval process.

If you are serious about getting a Wells Fargo loan modification, make sure you are prepared and have some upfront information about how to get approved. It’s not difficult to learn enough about the process to greatly increase your chances of success. Help is available if you know how to get it-make sure you have done everything you can to save your families home.

You can get the help you need to apply for a Wells Fargo loan modification by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to qualify for the Obama federal loan modification plan. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory
http://EzineArticles.com/?Wells-Fargo-Loan-Modification-and-the-Obama-Federal-Program&id=2123957