What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a federal program designed to help homeowners in Delaware avoid foreclosure. It is part of the Obama Administration’s Making Home Affordable (MHA) program, which was launched in 2009 to help struggling homeowners. HAMP is administered by the Federal Housing Finance Agency (FHFA). The goal of HAMP is to provide struggling homeowners with more affordable mortgage payments. To be eligible, homeowners must meet certain criteria, including having an eligible loan serviced by a participating lender, a mortgage payment that is more than 31% of the homeowner’s gross income, and an unpaid principal balance that is less than $729,750. HAMP helps homeowners by providing assistance in three main areas: loan modification, forbearance, and loan refinance. With loan modification, a homeowner would be able to reduce their monthly payments by extending their loan’s term or lowering their interest rate. Forbearance would allow a homeowner to make reduced payments or skip payments for a certain period of time. Loan refinance would allow a homeowner to replace their current loan with a new loan with a lower interest rate. HAMP has provided assistance to thousands of Delaware homeowners. As of 2018, over 4,000 homeowners in the state have received HAMP modifications, helping them avoid foreclosure and remain in their homes.

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What is the Home Affordable Modification Program?

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