HAMP: Mortgage Payments Easier

The Home Affordable Modification Program (HAMP) is a $75 billion program under the Making Home Affordable Program. It lowers your monthly mortgage payment to 31% of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40% drop in a monthly mortgage payment. 18% of HAMP homeowners reduce their payments by $1,000 or more.

How do I qualify?

If you meet all of the following requirements, then you might qualify:

* • You are the primary resident of the home.
* • You got your mortgage on or before January 1, 2009.
* • You have a mortgage payment that is more than 31% of your monthly gross (pre-tax) income.
* • You owe up to $729,750 on your home.
* • You have do have a financial need and are in danger of falling behind.
* • You are earning enough to support the modified payment.
* • You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

NOTE: The guidelines above are general in nature. Contact your mortgage servicer to see if you qualify for HAMP.

What do I do after I qualify?

If you’re ready to get the process started, put your financial papers in order and find out if your loan servicer is participating in HAMP (one of 38 organizations). Do note that all loans owned by Fannie Mae and Freddie Mac are required to participate in HAMP. Since the program is based on voluntary participation by lenders, excluding loans that were owned by Fannie or Freddie, the servicer must be on the list for your loan to be eligible for modification. Servicers are added to the list as they sign on to the program.

If you qualify for HAMP and have a second mortgage, you may also qualify for the Second Lien Modification Program (2MP).

LINKS

* Making Home Affordable HAMP page: http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/hamp.aspx
* More info on how to apply can be found at: http://www.makinghomeaffordable.gov/get-assistance/request-modification/Pages/default.aspx