What is the Home Affordable Modification Program?
The Home Affordable Modification Program (HAMP) is a federal program established to help homeowners in Oklahoma who are struggling with their mortgage payments. HAMP provides struggling homeowners with an affordable home loan modification. To be eligible, individuals must be delinquent on their mortgage payment and must demonstrate financial hardship. The program also encourages lenders to modify mortgages in a way that reduces monthly payments for homeowners. Under HAMP, lenders and servicers are offered financial incentives to modify loans and reduce monthly payments. When lenders modify loans, homeowners benefit in three ways: a lower interest rate, reduced principal balance, and increased payment terms. Typically, a loan modification reduces the monthly payment by extending the loan’s term from 30 years to 40 years, reducing the interest rate, or forgiving some of the principal. HAMP also helps homeowners who are underwater, meaning they owe more on their mortgage than the value of their home. These homeowners can benefit from programs such as the principal reduction alternative,Home Affordable Refinancing Program, and the second lien modification program. HAMP is available to homeowners in Oklahoma. To participate, homeowners must contact their lender to discuss eligibility and apply for a loan modification. For additional information, individuals should visit Making Home Affordable website for more information.
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