HAMP = Home Affordable Modification Program
Help for those with Financial Hardships...
Many homeowners want to stay in their Lake Mary homes, yet struggle with the current economy and the financial impact that it's had on their households. There are programs available to try and keep homeowners in their homes and HAMP - 'Home Affordable Modification Program' is one of those programs. There is no cost to apply for HAMP and it could be difference between saving a family from foreclosure.
Are you eligible for the HAMP program?
- Is your home your primary residence?
- Do you owe $729,750 or less on your first mortgage?
- Did you get your current mortgage before January 1, 2009?
- Are you having trouble paying your mortgage? [Have you had a significant increase in your mortgage payment or a decrease in your income. Do you have a documentable hardship?
- Is your payment on your first mortgage more than 31% of your gross income? (Including principal, interest, taxes, insurance and homeowner's association dues).
If you answered yes to these questions, you may be eligible for a Home Affordable Modification.
What does HAMP do?
A Home Affordable Modification lowers your total payment [principal, interest, taxes, insurance and homeowner's association dues] to 31% of the your verified gross (pre-tax) income to make them more affordable.
Homeowners must complete a trial period for 3 or 4 months and make their reduced payments on time to demonstrate that they are able to make the payments on time before they will be given a permanent modification. To create an affordable payment the servicer can lower the interest rate of the loan to as low as 2% and extend the mortgage term up to 40 years or even defer payments on your principal. A portion of the principal can even be forgiven, but that is up to the individual servicer.
How Do You Apply For HAMP
Step 1 - Complete the Request Form (Request for Modification Affidavit)
Step 2 - Complete the Tax Authorization
Step 3 - Provide Proof of Income