West Virginia

Recently the Obama Administration introduced two loan modification programs known as the Federal Home Affordable Modification - HAMP Program and the Federal Home Affordable Refinancing - HARP Program. Both mortgage modification programs were launched in March 2009 and provide finance adjustment help for those homeowners who qualify. These two modification programs are designed to provide homeowners facing possible foreclosure an opportunity to keep their home.

What Is The HAMP Program?

The HAMP Program is a mortgage modification helping Virginia and other homeowners across the USA who have suffered financial hardship including loss of a job, death of a spouse or loss of household income. It is a loan alteration help to get their home mortgage modified without having to refinance.

HAMP Eligibility Requirements

• Must be living in your property when you apply:

• Have obtained your mortgage before January 1, 2009;

• Your WWest Virginia mortgage balance is under $729,750 for a single family residence, $934,200 for a duplex, $1,129,250 for a triplex, and $1,403,400 for a 4 unit home;

• Your mortgage payment (including principal, interest, taxes, insurance, home owners association dues) must exceed 31% of your gross monthly pre-tax income;

• You can not afford your current mortgage payment due to a financial hardship that can be documented.

What Is The HARP Program?

The HARP Program is one of the loan modification programs intended to help those homeowners who want to refinance their mortgage but cannot because their homes value has decreased enough to prevent them from qualifying for normal Fannie Mae and Freddie Mac conventional lending loan to value guidelines. A loan changes with HARP may be the answer.

HARP Eligibility Requirements

• Your mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac. (See below to contact Fannie Mae or Freddie Mac);

• When applying for the HARP Program loan modification help you must be current on your mortgage payments. Current is defined as not more than 30 days late on your mortgage payment in the last 12 months. If you have had the mortgage for less than 12 months, then you cannot have missed a payment;

• Your mortgage balance cannot exceed 125% of your homes value;

• Your income is sufficient to pay back the new mortgage payment;

• Your mortgage loan modification must improve the long term stability and affordability of your current mortgage.

Example: your current mortgage is a 10 year Interest Only Mortgage and you are making a loan modification to a 30 year fixed rate mortgage.

For the HARP program you need to contact either your current mortgage refinance lender or one of the loan modification institutes to see if you qualify. For the HAMP program, you will need to contact your mortgage lender first - loss mitigation department to see what information you need to provide for a loan modification.