In this tough economy many homeowners are struggling to make their mortgage payments. In an attempt to assist the homeowner the government created a program, the Home Affordable Modification Program (HAMP). This program assists the homeowner in making their house payments more affordable.
It is designed for those homeowners who have been negatively impacted by financial hardship. HAMPs goal is to reduce the monthly mortgage payment to 31% of your pre-tax monthly income. If you are eligible for this program, the modification will permanently change the original terms of your loan. The following are instances in which you may be able to get a modification:
- You are ineligible for refinance
- Your hardship is long-term
- You currently are or will be behind on your mortgage payments
- You got your loan on or before January 1, 2009
The benefits to modifying your loan are many. Resolving your late status with your lender will change your status with the mortgage company instantly. Your monthly payments will become more affordable and the permanent change of terms will give you a fresh start. There will be less damage to your credit score than a foreclosure and you will be able to stay in your home.
Take the steps before you run into trouble. Gather all your financial information, explain your situation to your mortgage company and tell them you are interested in a Modification.