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HAMP
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Home Affordable Modification Program (HAMP) government program details
The Home Affordable Modification Program creates a defined loan modification process through which borrowers who are in default, at risk of imminent default, or in foreclosure can have their loans modified to a more affordable monthly payment equal to a target 31 percent of their monthly gross income.
FYI: The Home Affordable Modification Program will close to new borrowers on December 31, 2012.
Eligibility for HAMP
- Owner-occupied one to four unit property only. No investor owned property or vacant property is eligible.
- Your unpaid first mortgage must be equal to or less than $729,750 (there is a higher limit for two to four unit properties, ask your loan servicer for more information).
- Your loan is insured by either Fannie-Mae or Freddie Mac.
- Your loan must have originated on or before January 1, 2009, and must be a first lien. Second lien mortgages are not eligible.
- Your mortgage payment including insurance, taxes and any homeowner association dues must be more than 31% of your gross (pre-tax) monthly income.
- You cannot afford to make your current mortgage payment because it is not affordable for you.
- You can only modify your loan once under the program.
To take advantage of the Home Affordable Modification Program, contact your lender.
You will need to provide them with a copy of your most recent paycheck stub, your bank statement, a list of your debts and assets, your recent income tax return, W-2 or 1099’s and a hardship letter explaining why you cannot make your current loan payment. However, you must have enough income to show that you can make the new modified payment.
The interest rate will be lowered by no more than 2 points, then the term may be extended up to 40 years term, and debt forgiveness or refinance are also other options available.
| FYI: If your loan DOES NOT fall within the guidelines of the HAMP program, you can still negotiate with your lender or loan servicer to obtain a loan modification. This is the case for such properties with sub-prime mortgage loans, second liens and investor property.
For proven coaching to get your package moved to the top of the stack for faster approval, overcoming stall tactics, rejection and denial by your lender(s), review this recommended Loan Modification Handbook. If you are unemployed or do not make enough money to qualify for the HAMP program, you can still postpone a foreclosure for up to several months to buy some time using a little-known government program. You can literally stop your foreclosure in less than a day. Click here for more information on this Stop Foreclosure In a Day Strategy |
Resource Links for More Detailed HAMP Information
# Contact information for banks/loan servicers contact list
# USLaw.com #1 Online Legal Resource
FannieMae-insured loans
# HomeSaver Advance program: a HomeSaver Advance™ (HSA) is an unsecured personal loan designed to help eligible borrowers cure their first lien mortgage loan delinquencies.
FannieMae Home Affordable Modification Program (HAMP) Resources
# Making Home Affordable program
# Home Affordable Refinance program
# Modification evaluator: Use this tool to determine if you may be eligible for the Home Affordable Modification. Simply enter your current monthly gross income. The tool will calculate a mortgage payment guideline amount. If your current mortgage payment is above this amount and you meet the other Home Affordable Modification guidelines, then you may be eligible.
# Payment reduction estimator: Under the Home Affordable Modification program, the target maximum amount for your mortgage payment (or mortgage debt-to-income) should be 31% of your gross (pre-tax) monthly income. This Payment Reduction Estimator will determine what your current mortgage debt-to-income is and how much your monthly payment may be reduced if you qualify for a modification.
# Contact your mortgage servicer: Once you have determined if you are eligible for a Home Affordable Refinance or Modification, the next step is to contact your mortgage servicer to discuss your situation. A wide array of servicers have agreed to participate in the Home Affordable Modification program and have already engaged borrowers and expanded capacity to begin the modification process for eligible homeowners. In addition, all servicers for loans owned by Fannie Mae and Freddie Mac are required to participate.
# Find a HUD-approved housing counselor: Free help // HUD sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages.
# Modification eligibility: 5 questions to help you determine if you can qualify
# Modification homeowner example
# Understanding your mortgage statement: Mortgage statements come in many different forms. However, most contain similar terms and information. Here are some commonly used terms and their definitions that may help you better understand your mortgage statement the Making Home Affordable program.
# Homeowner events: Throughout the country, federal, state, and local governments, along with nonprofit organizations, are sponsoring homeownership events where borrowers can learn about foreclosure prevention options and get immediate help connecting with loan servicer representatives and local housing counselors. These events are also excellent opportunities to improve budgeting and money management skills.
# FannieMae loan lookup: The Fannie Mae Loan Lookup enables mortgage borrowers to quickly determine if Fannie Mae owns their loan by providing a street address, unit, city, state, and ZIP code.
FreddieMac-insured loans
Check to see if FreddieMac owns your loan
# Home Affordable Refinance program: If you’re current on your mortgage payments but unable to refinance because you owe more on your mortgage than your home is currently worth, you may be able to refinance to a lower or more stable rate through a Home Affordable Refinance, part of the federal Making Home Affordable program.
# Home Affordable Modification program: If you’re a homeowner who is behind in your mortgage payments, in the foreclosure process, or is current on your payments but are about to default as a result of a recently experienced hardship, you may be able to modify your loan to a lower rate through the Home Affordable Modification Program.
# Documents your lender needs to help you
Stop the Foreclosure Process in a Day
This little-known government program I mentioned above that will stop the foreclosure process dead in its tracks in less than a day, can also be useful if your loan modification approval process is taking too long and the clock is running out towards a foreclosure date.
Even if you do get approved and are in the trial loan modification period, you may still want to prevent your lender from “accidentally on-purpose” foreclosing on your house. It has happened. Read this article and this article and this article.
A homeowner can use this stop foreclosure themselves without paying an expensive attorney. The tactic can be used in every state. Click here for more information.
REMINDER: Before completing and sending in a loan modification package, you may want to obtain some coaching on how to submit your loan mod package to have the highest chance of getting approved
If you’re interested, you can check out the website for more information here