HAMP stands for the Home Affordable Mortgage Program, a government program which was designed to help homeowners avoid losing their homes to foreclosure. This program makes $75 billion in loan modification funding available, which allows borrowers to lower their monthly payments and (ostensibly) keep them from losing their homes.
Under HAMP an eligible homeowner may reduce their mortgage payments to 31% of their pre-tax income (or lower). Additionally, the Obama administration has issued a directive to prevent foreclosures while HAMP loan modifications are in process.
Do I qualify for HAMP?
To qualify for HAMP you must:
Live in your home as your primary residence
Have a monthly mortgage payment that is more than 31% of your pre-tax monthly income
Have a loan on your house that is no more than $729,750
Be unable to pay your current monthly mortgage payment
How do I apply for HAMP?
If you qualify for HAMP and would like to receive financial assistance under the program, you can call your lender to find out if they are participating. Before you make the call you will need to have all your financial papers in order. And don’t be surprised if the process takes longer than you would prefer.
It is important to exercise caution when signing up for HAMP. It can negatively affect your credit rating and there are instances in which lenders will knowingly violate the terms of HAMP and foreclose upon a property.
Contacting a Massachusetts Wrongful Foreclosure Attorney
If you signed up for HAMP and your lender has violated the terms of the program or proceeded with a wrongful foreclosure against you, contact a Massachusetts wrongful foreclosure attorney at Phillips & Garcia to schedule your legal consultation today – 1-877-892-5620.