The Home Affordable Modification Program (HAMP) is a relatively new program that was introduced by the Obama administration. As one of the many tools created to help homeowners avoid foreclosure, HAMP has very specific requirements. By understanding how HAMP works, homeowners will be able to take advantage of all the benefits this program provides.
What to Expect from HAMP
While many homeowners are struggling with their monthly payments, not everyone can qualify for a mortgage modification through HAMP. Going through the HAMP process will determine whether or not there’s help available to you from the government to avoid foreclosure. Even if HAMP can’t help your current situation, it’s still possible to pursue a mortgage modification on your own. Regardless, HAMP is a powerful tool to help you stay in control of your home.
In accordance with the guidelines set forth by the United States Department of Treasury, you must explain your financial hardship and why you are struggling with your mortgage payments. This process is similar to a traditional mortgage modification in that you must essentially recount your entire financial situation. Discuss what caused your reduction or loss of income and whether or not this financial circumstance is temporary or permanent. If you have no savings to make payments and cover basic living, then be sure to mention that as well. Similar to a mortgage modification, you entire financial profile must be revealed.
If you are able to get a mortgage modification through HAMP, then you must provide your servicer pertinent information including your household income, wages, IRS Form 4506T, household expenses, property taxes, and much more. To successfully prevent foreclosure through HAMP, it’s imperative to stay in close communication with your servicer as you pursue a mortgage modification. If foreclosure becomes unavoidable, then act as quickly as possible to seek the help of a foreclosure attorney to protect your rights.