When considering loan modification, it is important to remember that it may not be an easy process; and there is no guarantee the mortgage company will agree to a modification, so the risk of losing the home is still there. However, there are options available even to those who think they have none as they are facing foreclosure or are behind on their monthly repayments; a HAMP modification. Consulting a loan modification attorney about how a HAMP modification can possibly help should be the first step.
The HAMP Modification Program: Facts
- HAMP stands for ‘Home Affordable Mortgage Program’ and is a government backed initiative that was introduced in 2009.
- In a time of economic downturn and uncertainty, it was designed to give the mortgage lenders incentives to help homeowners who may be in a position of financial difficulty, and may be at risk of falling behind on their repayments or facing foreclosure.
- The program specifies criteria for both the homeowners seeking modifications and the companies who are willing to consider making modifications.
- For loan modification companies this means they will receive a cash incentive based upon how successful they are at helping people achieve a loan modification.
- For the homeowner they are granted a loan modification, which can mean lower monthly repayments, a reduced interest rate, and even a reduction in payments for an agreed period, when they make their payments on time. This also provides them with a relief from the stresses they are facing and removes some of the financial pressure until they can get everything in order.
Whilst the HAMP Program is a great help to many homeowners, it is not an all-inclusive program, and may not be suitable for everyone, this is why it is best to contact a modification company.