What is the HAMP Making Homes Affordable Program? If you're behind on your mortgage payments, in the foreclosure process, or current on your payments but are about to default due to a recently experienced hardship, you may be able to modify your loan to a lower rate through the Home Affordable Modification Program (HAMP), part of the federal Making Home Affordable Program. If you are having a tough time making your mortgage payments for reasons not related to unemployment, you may qualify for HAMP. HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.
Eligibility for HAMP*
You may be eligible to apply if you meet all of the following:
- You occupy the house as your primary residence.
- You obtained your mortgage on or before January 1, 2009.
- You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income.
- You owe up to $729,750 on your home.
- You have a financial hardship and are either delinquent or in danger of falling behind
- You have sufficient, documented income to support the modified payment.
- You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
*Eligibility criteria is for guidance only
Documents Required for a Making Homes Affordable Loan Modification:
- Last two years tax returns and any tax schedules
- Most recent month of paystubs
- Most recent two months of bank statements for savings/checking accounts
- Current mortgage payment coupons/statement for existing mortgages
- Hardship Letter
To find out more about HAMP and other programs, such as HAFA, contact a Jacksonville foreclosure defense attorney today for a free consultation (888) 316-2131.