Foreclosure Prevention - What is the Home Affordable Modification Program

8/28/2013

As we have previously announced, Money Management International is participating in a nationwide partnership to help families struggling with their mortgage payments apply for help from the Federal government’s Making Home Affordable Program.

One of the options available to homeowners who are struggling to pay their mortgage is the Home Affordable Modification Program, also known as HAMP. The following are answers to some of the most frequently asked questions about this program:

What is HAMP?

HAMP is designed to reduce your mortgage payments, making them more affordable and sustainable over the long term.

How do I know if I’m elgible?

You may be eligible if:

You are struggling to make your mortgage payments.
You are delinquent or in danger of falling behind on your mortgage.
You owe up to $729,750 on your primary residence or single unit rental property.
You obtained your mortgage on or before January 1, 2009.
Your property has not been condemned.
You have not been convicted within the last 10 years of crime in connection with a mortgage or real estate transaction.

How does HAMP work?

Your mortgage company reviews your request for mortgage assistance to determine if you qualify for HAMP.

If you qualify, you may start with a three-to-four-month trial period. Be sure to make your payments on time, and continue to pay, even if the trial extends beyond the expected length of time.

After a successful trial at the new payment level, your mortgage company will offer you a permanent modification. Be sure to understand the details of your agreement and continue to make payments in order to remain in good standing.

Most HAMP modifications feature lower interest rates and many include some form of principal reduction. In fact, HAMP modifications may save you more than $500 each month.

How do I apply for HAMP?

Give us a call at 888.665.9659 to speak with one of our HUD-certified housing counselors. From understanding your options to applying for assistance, we will work with you — free-of-charge — throughout the whole process.

Jessica Horton is a former copywriter and community manager at MMI.

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