The Home Affordable Modification Program (HAMP) was created by the Federal Government in an attempt to help the millions of Americans who are struggling due to the damaged housing market. The goal of the program is to lower the cost of monthly mortgage payments for people who are more than 30 days behind on their mortgage and help them find a more sustainable plan. HAMP is set to expire on December 31, 2016 and is not the best fit for all cases, but it is one of the options that is currently available.
Am I Eligible for the Home Affordable Modification Program?
You may be eligible for HAMP if you meet the following criteria:
- You own and occupy a one to four unit property
- Your property is not condemned
- You have a mortgage that was taken out on or before January 1st, 2009
- You are behind on your mortgage and owe up to $729,750 on your mortgage for a one unit property or:
- $934,200 for two units
- $1,129,250 for three units
- $1,403,400 for four units
- Your mortgage payment is more than 31% of your gross monthly income.
- You can provide evidence of a change in expenses or income that prohibits you from paying your current mortgage
Benefits under HAMP
Homeowners who qualify for HAMP can save hundreds per month on their monthly mortgage payments, and in some situations, be evaluated for principal balance reduction if their home is worth significantly less than they owe.
HAMP is Not Right for Me, What Next?
HAMP is just one of the variety of options that exists for loan modifications today. There is not a ‘one size fits all’ solution for loan modifications. Each situation is unique, and while HAMP may be your best option, it also may not. There are programs that are offered by mortgage loan servicers that may be a better fit for your needs. The best option when it comes to evaluating what loan modification is best for your needs is to speak to an experienced loan modification professional.
We have worked with many homeowners to see which loan modification programs are available to them, and which work best for their specific situation. Our firm is experienced in protecting the rights of borrowers and helping them overcome tough financial situations.
Contact Ira Metrick today to discuss your loan modification options.
Important Links
Learn more about HAMP at the following sites:
https://homeloanhelp.bankofamerica.com/en/loan-assistance-programs.html
https://www.makinghomeaffordable.gov/
http://www.fha.com/fha_article?id=39
