Home Affordable Modification Program: Overview
The Home Affordable Modification Program is 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.
Note: 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 – these incentives are detailed in the documents.
2 comments
cj powell
January 2, 2011 at 8:15 pm (UTC -7)
Chase Home Finance has turned me down 8 times for the HAMP loan modification that the Making Home Affordable people said I was entitled to. I am in Ohio and want to sue Chase. I really need some help with this and not a scam company. Anyone with a legitimate attorney who is in Ohio and willing to take this on, please let me know. Thank you….
Linda Farnsworth
January 14, 2011 at 4:16 pm (UTC -7)
I have been sending the same documents for 11 months. They us call center so no one can call you back except once a week. They reasign my accout just as I was told it was going to the underwirter to some other office and I had to start all over again. This is not funny and do not tell me I have done some thing wrong. I have stack and stack of papaers I have faxed. Mailed certified and they still say things are missing. I have sent in every thing they have ask for over, and over. I just need my loan redone and I will be find. I had to go on SSDI and then I started this project to save my house. This is not funny any more.
Is there a class action we can all be part of? We want to save our homes. We have let wall street take all the money and they are back at work still getting big bonuses while we are all trying to recover from there last fiasco.
Thank you