Home affordable modification program, loan modification programs, banking person of America loan modification for qualifying for HAMP home affordable modification program even when a is NOT currently delinquent this formula should be used by the loan provider. The debt coverage ratio of the borrower should be less than 1.20 and this hold lot of importance for qualification. But this procedure is sometimes difficult to work out, as it has been explained in the following steps. Below given is the formula which the lender calculates to check the eligibility for loan modification. According to James Cleith Phillips, who has experience with these questions. Home affordable modification program 2010 offer: Getting approved for a home affordable modification program can give you great benefits. Reduce your monthly payments lower your net interest of Council lower negatively your loan balance to waive accrued interest avail extensions on payments criteria A: for the debt coverage ratio net or deduction income and after tax is calculated which is than negative with the escrow amount which includes homeowners insurance, monthly property tax and homeowner association fees. Other credit obligations like the credit cards; car payments loans etc are so subtracted. Even the living expense liked car insurance, utilities, food and the investment property mortgages and negative rental income is so subtracted. Oxford BioMedica insists that this is the case.

Once the figure is obtained than it to Ford from divided with the figure which is of increased by the calculations below criteria B: now the first mortgage payment which includes principal and interest and excludes taxes or escrow and insurance is taken result: now A divided by B = coverage ratio the debt number which you get is called as debt coverage ratio and this is the perfect calculation which a servicer calculates to check the application for HAMP. Home affordable modification program guidelines are followed so as by the Treasury Department, Fannie Mae and Freddie Mac as of 1/01/2010 if the result of these calculations is less than 1.20 then one can be considered at risk for defaulting on payment. The Bank of America loan modification-says that the person should therefore have less than three monthly total present mortgage payments which include property tax and homeowners’ insurance payments and it should be there in liquid assets. These assets can be from any brokerage or financial institution like savings, mutual funds, money market account, stocks, etc. If a person qualifies for both these test than one can get a ratio which is less than 1.20 and even if the one have less than three months liquid assets then the process of HAMP loan modification program starts.

But if the amount exceeds 1.20 then one will be considered on risk of facing financial hardship and would not be eligible for HAMP loan modification programs. Then one can try for the federal loan modification program. It’s very important to know more and more whilst saving your home because that wants to build ones confidence. And only then one can have the mindset to get successful loan modification help.