The Home Affordable Modification Program (HAMP) is also part of a federal program to help homeowners.
HAMP encourages mortgage lenders to modify homeowners’ loans so that payments become more affordable—in fact, mortgage payments must be reduced to less than 31% of your monthly income to qualify for HAMP. According to MakingHomeAffordable.gov, HAMP homeowners typically save about $500 per month!
You may be eligible for HAMP if you meet the following basic criteria:
- You are struggling to make your mortgage payments due to financial hardship.
- You are delinquent or in danger of falling behind on your mortgage.
- You obtained your mortgage on or before January 1, 2009.
- Your property has not been condemned.
- You owe less than $729,750 on your primary residence or 1-4 unit rental property (loan limits are higher for 2-4 unit properties).