IRS Announces Guidance on the Principal Reduction Alternative Offered in the Home Affordable Modification Program (HAMP)

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IRS Announces Guidance on the Principal Reduction Alternative Offered in the Home Affordable Modification Program (HAMP)

IRS Announces Guidance on the Principal Reduction Alternative Offered in the Home Affordable Modification Program (HAMP)

IRS-

IR-2013-8, Jan. 24, 2013

WASHINGTON — The Internal Revenue Service today announced guidance to borrowers, mortgage loan holders and loan servicers who are participating in the Principal Reduction AlternativeSM offered through the Department of the Treasury’s and Department of Housing and Urban Development’s Home Affordable Modification Program® (HAMP-PRA®).

To help financially distressed homeowners lower their monthly mortgage payments, Treasury and HUD established HAMP, which is described at www.makinghomeaffordable.gov. Under HAMP-PRA, the principal of the borrower’s mortgage may be reduced by a predetermined amount called the PRA Forbearance Amount if the borrower satisfies certain conditions during a trial period. The principal reduction occurs over three years.

More specifically, if the loan is in good standing on the first, second and third annual anniversaries of the effective date of the trial period, the loan servicer reduces the unpaid principal balance of the loan by one-third of the initial PRA Forbearance Amount on each anniversary date. This means that if the borrower continues to make timely payments on the loan for three years, the entire PRA Forbearance Amount is forgiven. To encourage mortgage loan holders to participate in HAMP–PRA, the HAMP program administrator will make an incentive payment to the loan holder (called a PRA investor incentive payment) for each of the three years in which the loan principal balance is reduced.

[IRS.GOV]

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One Response to “IRS Announces Guidance on the Principal Reduction Alternative Offered in the Home Affordable Modification Program (HAMP)”

  1. Joe says:

    Another scam by the united states government. How many scams is that . Let’s see the $26 billion settlement,then there was that scam with the occ,then the $8.5 billion settlement ,ENOUGH IS ENOUGH. PLUS YOU CAN NOT DO ANYTHING TO A LOAN IF ALL THE ORIGINAL DOCUMENTS ARE GONE. THE BANK OR SERVICER DESTROYED EVERYBODIES DOCUMENTS IN THE HOLE USA THERE GONE FOR GOOD. THEY HAD TO. THEY DIDN’T WANT ANY TRAIL TO THE BIGGEST PONZI SCHEME IN THE USA. THEIR IS NO OWNER TO EVERYBODIES HOUSE IN THE UNITED STATES .Everybodies house has mers. ONCE THERE IS MERS INVOLVED THATS IT YOU WERE SCAMMED THE BANK OR SERVICER GOT PAID ALREADY FOR YOUR LOAN. EVERYBODY IN THE UNINTED STATES IS PAYING A NOBODY. THEY ARE PAYING A SCAM ARTIST. WHEN IS EVERYBODY GOING TO WAKE UP. EVERYBODY SHOULD WRITE A SIMILAR LETTER TO THERE ATTORNEY GENERAL AND MAYBE STOP PAYING THERE MORTGAGE UNTIL THE UNINTED STATES GOVERMENT STOPS HELPING WITH THE COVER UP AND MAKE THE LITTLE SCAMMERS SAY THE TRUTH THAT YOUR LOAN WAS PAYED OFF AND SEND THEM TO JAIL WITH THE LITTLE JUDGES,CONGRESS IDOTS AND GOVERNMENT IDOTS AND OBAMA IDOT THAT THE BANKS GAVE MONEY TO TO STAY QUIET AND THAT ARE HELPING THEM WITH THERE SCAM. THEY MANIPULATED THE SCAM SO MUCH THAT YOU GONNA NEED 10 COLUMBOS TO PUT THE PUZZLE PIECES BACK TOGETHER. MISS ONE PAYMENT AND THEY WILL FORECLOSE ON YOU. THIS COUNTRY IS OWNED BY MERS.

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