People who have an in-depth knowledge of the financial market know very well of our country’s current economic condition.  When the economy has been faced with turmoil, many businesses have been greatly affected, which includes Hawaii mortgage companies.  Based on reports, more or less 8 million homeowners are currently in the verve of foreclosure.  Because of this, President Barack Obama, in partner with the treasury department, has come up with a possible solution to this problem, and this is known as the Home Affordable Modification Program.

The Home Affordable Modification Program is a voluntary service wherein mortgage companies, banks and other financial institutions are encouraged to join and offer it to their mortgagors or borrowers.  As of today, there are already more than 150 mortgage providers that have participated in the said program.

There are requirements that have to be met before the mortgage modification program can be granted to mortgagors, and they are as follows:

1. The mortgage company in which the mortgagor has obtained mortgage from must have volunteered to become part of the mortgage modification program.

1. The mortgagor also has to submit his or her gross monthly earnings.

1. The mortgagor must also submit a letter stating why he or she should be granted of this mortgage modification program.

1. The mortgage repayments must only total to 31% of the mortgagors monthly gross income.  Otherwise, the application for this program will have to be declined.

1. This Home Affordable Modification Program is only for mortgagors that have availed of a home mortgage.  Mortgaged properties that are used for business or vacation are not included in the program.

1. The mortgagor should have obtained the mortgage on or before January 01, 2009.

1. The mortgagor should submit a proof of occupancy, and this has to undergo a verification process.

This is really good news to people who are already having a hard time settling their mortgage.  However, this mortgage modification program will only be offered until December 31, 2012 and it can only be availed once.

This mortgage modification program offers leniency to borrowers who are lucky to be included in the program.  The interest rates are set to a fixed rate.  The years of payment or tenure can also be extended to as long as 40 years, if needed.

The Home Affordable Modification Program is one program of the government that really has a very significant and positive impact on the lives of mortgagors.  So, if you are one of the millions of people who want to avoid foreclosure, find out immediately from your mortgage provider if you’re qualified to avail of the mortgage modification program.