How do I get a modification under HAMP?

In order to obtain loan modification under HAMP, a homeowner must meet certain criteria, as outlined by the Financial Stability Act of 2009 and ensuing Making Home Affordable Program created by the Act. These eligibility requirements include:

• All home loans seeking modification must have originated prior to January 1st , 2009

• Certain limits are set regarding eligibility, with a any first-lien homeowner with owner-occupied residence being allowed to participate, assuming outstanding loan balance is less than $729,750, with certain exemptions and higher limits allowed for owner occupied residences with multiple units

• Eligibility hinges on documenting and proving current gross monthly household income, including documenting that at least 31% of this income is dedicated to loan principal balance and interest repayments, including payments for property taxes and insurance costs

• Modifications under program allowed until December 31st of 2012, with mandate that an individual homeowner be allowed only one (1) modification during the lifetime of the program

If you feel you are eligible for assistance under the HAMP program, the next step will be to contact your lender directly. While most lenders are part of the HAMP program, not all are. For more information and insight about your specific home loan, as well as how to participate in the HAMP program as a viable option to prevent foreclosure, consult with a foreclosure lawyer in your state of residence today.