Sunday, May 2, 2010


You will find the Application for the Home Affordability Mortgage Program, HAMP, at: 
There are two other forms for HAMP, commonly known as the Obama Plan, found at LawThing so print them out too.  The Financial Information Packet that you have to fill out will come directly from the mortgage company or bank and you will have a limited time to fill it out and send it in.  In advance, or right now, get your last 2 years of your US tax returns together, 2 months or all your bank statements (if you can't located them go to your bank and get copies).  Also, the bank will want proof that you live in the home and that it is your principle home.  They will accept utility bills.  Get all car, trailer and RV titles to prove that you own the vehicle(s), make out a monthly budget to show what your monthly expenses are and then verify your income.  Income can be verified by W-2 forms that you fill out for your employer, or pay stubs.  If you are self-employed make up a Profit and Loss Statement for the last quarter.  If you don't know how to make one you'll have to pay a community college teacher or bookkeeper.  If you are on Social Security copy the Award Letter. 
When everything is collected take 31% of your household income.  Multiply your monthly income by point three one.  That is,   .31    That will give you the amount of your Obama Plan huse payment.
The 31% payment is what the banks call the "hypothetical" house payment.
Make out a "hypothetical" Budget.  Again, if necessary, seek help to make out a household budget.
IF all your monthly household bills plus the "hypothetical" house payment is LESS than your monthly household income, you will be okay.  If all of your household bills including the hypothetical house payment is MORE than your household income you are not okay.  Here is what you have to do, pare down your monthly expenses.  For example, make arrangements with your credit card companies and other creditors for lower monthly payments.  Sell assests to pay off bills.  Lower your cable costs, drive less, eat less, go to movies and restaurants less, don't worry about buying new clothes or shoes or having vacations.  The point is this, you must have a household budget that is LESS than your monthly expenses.  You can do it, you MUST do it!


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