Loan Modifications and the Making Home Affordable Modification Program (HAMP)

If you are under water on your mortgage, and you are having trouble making your payments, contact your loan servicer to discuss your options as early as you can. The longer you wait to call, the fewer options you will have.

Servicers are getting lots of calls: Be patient, and be persistent if you don’t reach your servicer on the first try. Also, it’s worth calling your servicer even if your request has been turned down before, since there may be new options available that may help you.

One of these loan modification options is the US government's called the Making Home Affordable Modification Program (HAMP). You may be eligible if the following apply to you and your loan:

- Your home is your primary residence

- You owe less than $729,750 on your first mortgage

- You got your mortgage before January 1, 2009

- Your total payment on your first mortgage, including principal, interest, taxes, insurance and homeowner’s association dues (if applicable), is more than 31 percent of your current gross income

- You can’t afford your mortgage payment because of a financial hardship, like a job loss or medical bills.

If you meet these qualifications, contact your servicer. You will need to provide documentation that may include:

- Information about the monthly gross (before tax) income of your household, including recent pay stubs.

- Your most recent income tax return.

- Information about your savings and other assets.

- Your monthly mortgage statement.

- Information about any second mortgage or home equity line of credit on your home.

- Account balances and minimum monthly payments due on your credit cards.

- Account balances and monthly payments on your other debts, like student loans or car loans.

- A completed Hardship Affidavit describing the circumstances responsible for the decrease in your income or the increase in your expenses.

Don't worry if you don't have all the information right now or if you are not sure if all the restrictions apply to you. If you think that this program is for you, call your loan servicer now and get the ball rolling.

Resources
Find out if you are eligible for the program