The Home Affordability Modification Program

The Home Affordability Modification Program (“HAMP”) is federal designed to help as many as 3 to 4 million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.
Borrower eligibility is based on meeting specific criteria including:
    1. Borrower is delinquent on their mortgage or faces imminent risk of default
    2. Property is occupied as borrower’s primary residence
    3. Mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.
After determining a borrower’s eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower’s total pretax monthly income:
    • First, reduce the interest rate to as low as 2%,
    • Next, if necessary, extend the loan term to 40 years,
    • Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.
Servicers may elect to forgive principal under HAMP on a stand alone basis or before any modification step in order to achieve the target monthly mortgage payment.

The Home Affordable Modification Program includes incentives for borrowers, servicers and investors. For more information about the HAMP Program contacted Attorney Gary Nitzkin via email or telephone. You can also visit our FAQs about the HAMP Program on this site.

If you are in the midst of losing your home to foreclosure in Michigan, you need professional help now! Time is not on your side. For a flat fee of $1,500 we will provide you with up to 7 hours of legal consulting and representation the help you exit the foreclosure process on your terms and not the lenders. Call or email Attorney Gary Nitzkin at (888) 293-2882 for a free consultation