Avoid foreclosure with home mortgage modification programs in South Carolina
Due to a variety of circumstances, many South Carolina homeowners are unable to meet their mortgage obligations. If you are one of these homeowners, you may be able to get adjusted, more affordable payments through one of the many home mortgage modification programs in South Carolina.
In understanding whether a home loan modification program is right for you, it is important to first understand what is involved in a loan modification. With a loan modification, you won’t need to qualify for a new mortgage loan because lenders will modify the length or rate of your current mortgage. Lenders are now often more willing to modify the terms of a borrower’s loan in order to avoid foreclosure, because the foreclosure process is time-consuming and expensive for banks.
South Carolina home loan modification programs are now more readily available because in May, 2011, the South Carolina Supreme Court issued an administrative order ceasing all pending foreclosure actions until lenders proved they had attempted to work out a loss mitigation or loan modification option with homeowners.
Both private lenders and the federal government offer home mortgage modification programs in South Carolina. The Department of the Treasury and the Department of Housing and Urban Development created many options for homeowners under the Making Home Affordable Program. Depending on your situation, MHA can help you keep your home through lower mortgage payments or exit your mortgage while avoiding foreclosure.
Each home mortgage modification programs in South Carolina has a set of specific requirements. For example, the property must have been purchased prior to 2009 and must not have been condemned. The amount you owe on your mortgage also must not exceed specified limits.
In order to apply for a mortgage modification, South Carolina homeowners will need to prove hardship in a letter. Your hardship letter needs to outline the changes that make it difficult for you to pay your mortgage.
The two programs under MHA you hear about most often are the Home Affordable Refinance Program (HARP) and Home Affordable Modification Program (HAMP). HARP helps you change the terms of your mortgage or lower interest rate if you are not behind on your mortgage but cannot get traditional financing. Your mortgage must be backed by Freddie Mac or Fannie Mae and issued before May 31, 2009.
HAMP helps people refinance their primary residences and rentals. This program is wide-reaching and was recently expanded to include homeowners who defaulted on trail payments or previous HAMP refinancing.
In addition, South Carolina was one of the 18 states to get federal money from the Hardest Hit Fund. The South Carolina Homeownership and Employment Lending Program (SC HELP) has five different ways to help people in the state keep their homes.
When considering any of the home mortgage modification programs in South Carolina, you should talk to your lender and an authorized housing counselor to determine which option is best for you. To find lenders knowledgeable in refinancing options, go to RealtyNow.