What is the Home Affordable Modification Program?

The Home Affordable Modification Program, or HAMP, is a federal program created in 2009 to help struggling homeowners stay in their homes by offering mortgage modifications. This program is available to any homeowner who has an existing mortgage obligation and who meets certain eligibility requirements. In California, certain lenders are required to participate in HAMP to offer homeowners the opportunity to modify their mortgage payments to an affordable level. Under the program, lenders review the homeowner’s income and expenses in order to determine their ability to make affordable mortgage payments. If the homeowner’s income is not enough to cover their mortgage payments and other expenses, lenders may reduce the interest rate, extend the term of the loan, or even forgive part of the loan principal. The monthly payment is then calculated based on the homeowner’s current income. HAMP has been instrumental in helping many California homeowners stay in their homes and keep up with mortgage payments. It is important to note, however, that this program is only available to homeowners who qualify, and not everyone will be approved. If you are considering applying, it is important to speak to a qualified lender or housing counselor who can review your options and help you decide if HAMP is right for you.

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What is the Home Affordable Modification Program?

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