Loan modification calculation qualification examples for HAMP

The government program known as the Home Affordable Modification Program creates a defined loan modification process. The HAMP program is designed to help borrowers who are in default, at risk of imminent default, or in foreclosure can have their loans modified to a more affordable monthly payment equal to a target 31 percent of their monthly gross income. I created a HAMP page with lots of resources to help you check eligibility guidelines. I want to give you a few examples to help you understand the numbers to see if you qualify. Loan Modification Calculation 1 Your income is: 5,000 per month Your current interest rate is: 8% Your current loan term is: 30 years Your current loan amount is: $800,000 Your Tax, Insurance & Ass Fees: $9,000/yr You have a Hardship: Yes In Bailout Calculation 1: You DO NOT qualify because your loan is over the limit of a conforming loan. Loan Modification Calculation 2 Your income is: 3,000 per month Your current interest rate is: 8% Your current loan term is: 30 years Your current loan amount is: $400,000 Your Tax, Insurance & Ass Fees: $5,000/yr You have a Hardship: Yes In Bailout Calculation 2: You DO NOT [...]