Home Affordable Modification Program (HAMP)

In an effort to provide struggling homeowners with some welcome relief, the Home Affordable Modification Program (better known as HAMP) is a program within the Making Home Affordable (MHA) program offering reduced monthly mortgage payments. Thus, the aim of HAMP is to allow homeowners to remain in their homes by making their payments more affordable and sustainable long-term. To qualify, families must be able to demonstrate that they are facing financial hardship. In addition, it must be determined that they can make their monthly payments after they have been reduced. Even so, the primary purpose of HAMP is to set a standard by which families can continue to make mortgage payments without the fear of foreclosure.

In the wake of the housing crisis of 2008, the mortgage servicing industry had no way of addressing the needs of the market, specifically in regards to the increasing number of foreclosures. Therefore, the initial scope of HAMP was to encourage some sort of meaningful recovery for homeowners and families. With an average savings of approximately $530 on a monthly mortgage, it has done so successfully. Yet, its influence has extended to private lenders, with many agreeing to modify mortgages at no expense to taxpayers, as stated by the U.S. Department of the Treasury. To date, public and private sectors have helped millions of Americans obtain mortgage assistance and avoid foreclosure.

With a number of incentives for homeowners, servicers and investors to promote successful mortgage modifications, HAMP has increased the capacity of certain servicers to help struggling homeowners. Moreover, HAMP remains part of the government’s response under the MHA program, and is an important component needed to stabilize the housing market. With other programs included such as the Home Affordable Refinance Program (HARP), Principal Reduction Alternative (PRA), Home Affordable Unemployment Program (UP), the Second Lien Modification Program (2MP) and options for government-insured mortgages, the Department of Treasury hopes to help homeowners avoid foreclosure by keeping their loans current.

The attorneys at Plunkett, Hamilton, Manton & Graves, LLP, provide trusted legal counsel and guidance into mortgage modification services, with critical insight into MHA and HAMP. For active and diligent assistance to your request, contact us today to schedule a confidential consultation.