The Home Affordable Modification Program (HAMP) is designed to help homeowners, who are struggling financially, avoid foreclosure by modifying their loans. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.
Who is it for?
Borrower eligibility is based on meeting specific criteria including (but not limited to):
- The borrower is delinquent on their mortgage or at risk of imminent default (subject to prior approval of the owner of the loan).
- The borrower must fully document income, including a signed IRS Form 4506-T EZ, two most recent paystubs, most recent tax return, and a signed affidavit of financial hardship.
- The mortgage is secured by a single family property that is owner occupied or a rental property. Rental property may be considered eligible if:
- Two or more mortgage payments are due and unpaid (rental properties are not eligible for imminent default consideration);
- The borrower certifies that he or she does not own more than five single family properties;
- The rental property is currently occupied by a tenant as a principal residence or is vacant; The borrower certifies in writing that he or she intends to rent the property to a tenant or tenants for at least five years following the effective date of any permanent loan modification and that he or she will make reasonable efforts to rent the property on a year-round basis if the property is or becomes vacant during such period. Notwithstanding the foregoing, during such five year period the borrower may sell the property, occupy it as the borrower’s principal residence, or permit any dependent, parent, or grandparent to occupy the property as such party’s principal residence with no rent charged or collected.
- The owner of the loan may require that a Net Present Value (NPV) test (also known as an economic test) must be run to compare the NPV of the loan with a modification to the NPV of the loan without a modification.
While the program is designed to help borrowers who are experiencing a financial hardship, not all borrowers will meet the eligibility qualifications established by the Department of Treasury, and therefore, not all borrowers are eligible for a HAMP loan modification.
This is a communication from a debt collector attempting to collect a debt. Any information obtained will be used for that purpose. However, if you have filed a bankruptcy petition and there is either an “automatic stay” in effect in your bankruptcy case, or your debt has been discharged pursuant to the bankruptcy laws of the United States, this communication is intended solely for informational purposes.