The U.S. Department of the Treasury and the Departement of Housing and Urban Development have updated guidance for servicers participating in the Obama Administrations Home Affordable Modification Program (HAMP). The guidelines, designed to help improve the conversion from trial loan modifications to permanent modifications, takes effect June 1. Mortgage servicers may elect to implement the guidelines sooner. The updated process requires that servicers collect three documents upfront:
- A formal application, including a description of the hardship created by the mortgage
- Proof of income, such as two recent pay stubs or the most recent profit and loss statement for self employed borrowers
- A form authorizing the Internal Revenue Service to release tax data to the servicer
Under the plan, servicers will be required to respond within 10 days to an initial request for a modification. Once documents are provided, the servicer will have one month to let borrowers know whether they qualify for a trial modification.
To read 92101 Urban Living’s former blogs click on Tax Credit for New Home Purchase in Downtown San Diego and Reduce Your Monthly Mortgage Payment and Stabilize your Condo or Loft in Downtown San Diego with the Home Affordable Plan!!! ')}