What is the Home Affordable Modification Program?

The Home Affordable Modification Program (HAMP) is a federal initiative established by the U.S. Government to assist struggling homeowners in avoiding foreclosure. The program offers loan modifications to mortgage borrowers who are current on their mortgage payments, but are unable to refinance or have payments that are greater than 31% of their gross monthly income. HAMP is a part of the broader Making Home Affordable Program, which was established by the Obama Administration in 2009. In order to be eligible for HAMP, borrowers must meet certain criteria, including: the loan must be for a primary residence, the loan must be owned or guaranteed by Freddie Mac or Fannie Mae, and the loan must have originated before January 1, 2009. In addition, borrowers must show that they cannot make their current mortgage payments due to a financial hardship. Once a borrower is approved for HAMP, they may be able to receive a lower interest rate, a longer loan term, a principal forbearance, or a combination of all three. The modifications are based on the borrower’s ability to pay and the equity in their home. However, modifications are only offered for a limited period of time, and borrowers will need to keep making their payments until the modification is finalized. HAMP is just one of many programs available to struggling homeowners in Oregon and across the nation. Through HAMP, borrowers may be able to avoid foreclosure and get back on the path to a successful and secure financial future.

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What is the Home Affordable Modification Program?

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