What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a mortgage assistance program created in 2009 by the Federal Government. It is designed to help eligible homeowners in California who are struggling to make their mortgage payments due to a hardship like unemployment, illness, or disability, avoid foreclosure. The program provides assistance in two ways. First, it allows borrowers to modify their existing loan by reducing their monthly payment to an affordable level. This can be done by extending the loan term, reducing the interest rate, or deferring a portion of the unpaid principal balance. Second, it provides a temporary forbearance if an eligible borrower can’t afford to make their mortgage payment. Eligibility for HAMP is based on a number of factors, including the borrower’s income and debt-to-income ratio, monthly payment on their mortgage, and the value of their home. The lender must also agree that it is in the best interest of both the borrower and the lender to modify the mortgage. HAMP has been successful in helping thousands of California homeowners avoid foreclosure. It is available to both homeowners with government-backed mortgages and those with private mortgages. Homeowners interested in learning more about HAMP should contact their lender or a HUD-approved housing counselor.

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What is the Home Affordable Modification Program?

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