Before requesting a mortgage loan modification using the Obama Administrations Home Affordable Modification Program or HAMP, the homeowner should ensure they qualify for the program. There are specific guidelines for HAMP that must be meet to qualify for the program. Some of the requirements include loan cap amount, income, hardship verification and monthly payment guidelines.
Steps to Request a HAMP Home Loan Modification
Once the homeowner verifies that they qualify for the program, there are specific steps than should be taken to apply. The steps for applying for a modification are done through the homeowner's current mortgage servicer. The following are the steps to request a home loan primary mortgage modification through HAMP.
- Step 1 – Request form
- Step 2 – Tax authorization form
- Step 3 – Proof of income
- Step 4 – Sending documents (step 1 to 3) to mortgager lender
Application Request Form for HAMP
The first step is to fill out a Request For Modification and Affidavit or RMA form. The form consists of three pages and must be filled out completely. This form is used to give the mortgage servicer some background on the home as well as the homeowner’s financial circumstances.
This form also includes an affidavit for the homeowner(s) financial hardship. As part of the application process, a hardship that led to the current financial difficulties must be documented. Typically financial hardship listed on the form include
- reduced income
- increased expenses
- excessive debt payments
- lack of cash reserves
- other (explain)
Tax Authorization Form for Mortgage Servicer
The next step in the process is to complete IRS Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. This form allows the mortgage lender to receive the personal income tax information directly from the IRS. If there is more than one person on the mortgage loan that files separate income taxes, more than one form may need to be completed.
Provide Proof of Income for Mortgage Servicer
A requirement by the Obama Administration is for the mortgage lender to verify the homeowner(s) income. To satisfy this requirement, the homeowner(s) must send certain documentation to prove their income. The types of income documentation can vary depending on the income source. Use the income documentation checklist of requirements. The original documentation should be retained by the homeowner and copies sent to the mortgage servicer.
Once the first three steps are completed, send all forms and documentation to the mortgage servicer. Make sure that the homeowner retains all copies of forms and documents. One of the primary mortgage modification complaints is that mortgage lenders lose or misplace the application documentation.
If the homeowner(s) do not qualify for HAMP there may be other alternatives for reduced mortgage payments. One alternative for reduced payments is HARP or House Affordable Refinance Program. If the current home mortgage is backed by Veterans Affairs, a VA refinance could be another alternative. If a homeowner needs help filing for HAMP, they can all the Homeowner’s HOPE Hotline at 888-995-4673.
Source:
Making Home Affordable, website accessed January 30, 2011, http://www.makinghomeaffordable.gov/index.html
James Clausen - Clausen received a Bachelors Degree in Business Administration in Automotive Management and Marketing at Northwood University, graduating ...
Join the Conversation