MORTGAGE MODIFICATION

HAMP Modification

Mortgage modification changes the terms of a loan to make the monthly payment more affordable. Changes may be made to the interest rate or to the number of years the borrower has to repay the loan. A mortgage modification may also be called a loan modification, loan restructuring, or workout plan.

Most mortgage lenders are only set up to take your payments, or service the loan. They then forward the payments to the investor that actually owns your loan or note.  Ask if your mortgage lender is only a servicer, and if so, ask them for the phone number to the investor that actually owns your home. Generally, the note owner must approve the loan modification.

What is HAMP?

Making Home Affordable is a federal program that offers qualified homeowners a loan modification to help make mortgage payments affordable. This modification is known as the Home Affordable Modification Program or HAMP.

The Home Affordable Modification Program (HAMP) is implemented through a 2009 Making Home Affordable (MHA) program designed to stabilize the housing market and help struggling homeowners obtain relief and avoid foreclosure. (HAMP) provides eligible borrowers the opportunity to lower their first lien mortgage payment to affordable and sustainable levels through a uniform loan modification process. Both borrowers who are current on their mortgage and those who are behind on their payments are eligible for a modification; however, the borrower must demonstrate that default is looming.

Before you hire a lawyer:

Understand the basics about mortgage modification. Mortgage modification is permanent. Decide if it is worth paying a mortgage lawyer. You have the right to handle the modification negotiations by yourself if you desire.