Affordable Mortgages Under HAMP
If you have officially received approval for a loan modification under the Home Affordable Modification Program (HAMP), your loan servicer will make sure that your new monthly mortgage payment is no more than 31% of your monthly income.
The strategies used to lower your mortgage payment under HAMP include the following:
- Reduction of your interest rate – a rate as low as 2% is a possibility. In return for the low rate, the U.S. Treasury Department extends financial incentives to your loan provider. This doesn’t mean that everyone who qualifies for a HAMP loan modification will get 2% interest rates. If a 5% rate is sufficient to lower you mortgage to an affordable payment, then a 2% rate would not be necessary.
Foreclosure plague slowing : Filings fall by 8%
The following article that was posted earlier in this month on cnnmoney.com speaks to the fact that in the month of November there was a decrease in foreclosure filings nationwide. This does not necessarily hold true to South Florida. And the questions still persists if this is a temporary lull considering the millions of people who will soon find themselves with no further unemployment benefits as well as no new jobs. So with loan modification plans continuing to be revised by the Obama Administration and hundreds of thousands of people awaiting approval of Short Sale offers by their current lenders we sit and we wait to see what the new year to bring us. I hope that you find the following article insightful and informative.