HAMP stands for Home Affordable Modification Program. It was introduced in 2009 in order to help homeowners apply for loan modifications while protecting the interests of the taxpayers. Before loan modification programs were introduced, mortgage lenders didn’t have a standard approach to use in order to work with homeowners when they were on the verge of a foreclosure. HAMP provides clear loan modification guidelines that can be used by the entire mortgage industry. This program even encourages homeowners, mortgage lenders and mortgage servicers to have a successful mortgage modification.
Can anyone who is struggling to make mortgage payments apply for HAMP?
This program has specific requirements to apply for it. In order to be eligible to apply, you need to have the following:
- Loans must originate on or before January 1, 2009.
- The owner cannot owe the lender more than $729,750.
- The property cannot be condemned as uninhabitable.
- The homeowner must prove that the ratio or mortgage payment to their income meets a certain standard that shows financial hardship. Situations that qualify for financial hardship are increase in debt, divorce, chronic illness, death of a household member and uncontrollable increase in debt.
- All documents that prove hardship, such as bank statements, paycheck stubs, etc. should be documented and ready.
What to do now?
Many people are in fact eligible for the HAMP but don’t know where to start from. With the help of a loan modification consultant, you will be able to know where to begin from and what to do in this regard. Eligibility for HAMP makes loam modification applications easier as long as you have the eligibility. Visit us at www.loanmoddepot.com for loan modification help and expert advice on what to do next and how to do it.