What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a program designed by the federal government and implemented in Kansas to help homeowners avoid foreclosure. HAMP provides financial incentives to mortgage servicers, lenders, and borrowers to modify existing mortgages, making them more affordable. The program allows borrowers to lower their monthly mortgage payments by reducing their interest rates, extending or reducing the term of their mortgage, or forgiving part of their debt. To qualify for HAMP, borrowers must demonstrate a financial hardship, such as a job loss, illness, or divorce. Borrowers must also have a mortgage balance that is equal to or less than $729,750, must have made at least one full payment on their mortgage before the start of the modification process, and the mortgage must have been originated prior to January 1, 2009. Once qualified, mortgage servicers are able to modify a borrower’s loan by offering lower interest rates, extending the term of the loan, and forgiving part of the debt. In return, the borrower is expected to make timely mortgage payments and meet other requirements set by their servicer to keep the modified loan in good standing. Ultimately, the goal of the Home Affordable Modification Program is to help struggling borrowers stay in their homes. In Kansas, the program has been successful in helping thousands of homeowners stay in their homes and avoid foreclosure.

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What is the Home Affordable Modification Program?

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