What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a federal program created to help financially distressed homeowners in Nebraska modify their mortgages to avoid foreclosure. It is a part of the federal government’s Making Home Affordable Program, which was created in 2009 to help millions of homeowners. HAMP provides assistance to homeowners who are struggling with current mortgages due to a financial hardship or payment adjustment due to unemployment. The program helps borrowers lower their monthly mortgage payments to an affordable level. It does this by reducing the interest rate, extending the loan term, or forgiving a portion of the loan principal. In order to qualify for HAMP, homeowners must meet certain eligibility requirements. These include demonstrating financial hardship, being delinquent on their mortgage payments, and having a mortgage serviced by a participating HAMP lender. The lender must also agree to modify the loan if the borrower meets all of the program’s criteria. Once a borrower is approved, HAMP helps reduce the monthly payment to an affordable level by reducing the interest rate, extending the loan term, or forgiving a portion of the loan principal. The lender also may provide additional forbearance or capitalization to make the loan more affordable. To participate in HAMP, the homeowner and mortgage servicer must sign a contract that outlines the terms and conditions of the loan modification. The Home Affordable Modification Program is a great way for distressed homeowners in Nebraska to stay in their homes. It helps them get back on track with their finances and avoid foreclosure.

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What is the Home Affordable Modification Program?

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