Approval or denial for loan modification within 30 days of receipt of a homeowner’s application. Additional information is available at Eric Valente. Three months trial modification given to qualified borrowers which become Permanent automatically. In case of denial, homeowners must be offered on option of short sale or a deed-in-lieu to transfer to more affordable housing. The HAMP loan modification guidelines helps eligible borrowers to sign up for a trial loan modification period. The trial period tests the ability of the borrower to make the new modified mortgage payments. A borrower has to make three consecutive timely mortgage payments to get approved from trial to permanent modification. The new program guidelines require that income verification documents should be submitted before entering trial period.

The income sources that should be accepted to gain eligibility for loan modification program are so clearly spelt out. The new regulations need the following data from the borrower before trial modification commences: for verification of income paystubs of the two most recent pay periods IRS Form 4506-T that provides info on tax records of the borrower hardship letter and latest financial statements the new program guideline deals with the discontent of the loan modification lender over the issue of principal forbearance. Lending institutions do not have to forcibly forebear thirty percent of mortgage principal or any amounts not confirm with required LTV ratios due to modified interest that do. Borrowers may become ineligible under new HAMP guidelines if it is not possible to reduce the mortgage payment according to the requirements of the program. Lenders do have individual choice to forbear the principal on a mortgage to help borrowers with the required monthly payment.