If you are facing foreclosure, you should consider applying for HAMP, a program developed by the federal government in response to the mortgage crisis. This program offers opportunities to modify or refinance your mortgage to make your monthly payments more affordable.
Eligibility
To be eligible for the Home Affordable Modification Program, your loan must
- have originated on or before January 1, 2009.
- be a first lien loan
- unpaid principal balance should not exceed $729,750. This limit is higher for owner occupied properties with 2-4 units:
2 Units: $934,200
3 Units: $1,129,250
4 Units: $1,403,400
The home must be your primary residence, single family 1-4 unit property (including condominium, cooperative, and manufactured home affixed to a foundation and treated as real property under state law).
Application
If you want to apply for HAMP, you must contact your lender. You should collect the application packet from the lender. You must complete an application that includes a financial statement, hardship letter and also be able to provide proof of their income. You must provide financial and residency information. You must complete and submit the IRS Form 4506-T included in the application, as well as additional documents that will depend on your employment and income. Generally all applicants will be required to provide the following documents:
- Most recent pay stubs that reflect at least part of your Social Security number or another type of identification number
- Most recent filed federal tax return
- Proof of occupancy. This can be in the form of a recent utility bill in your name at property address.
The income evidence and financial statement you provide must not be older than 90 days as of the date on which your lender receives your application.
Acknowledgment
Within 10 business days of receipt of your application, the lender will acknowledge in writing application for HAMP participation by sending you a confirmation that your application was received. You will also receive from the lender a description of the evaluation process and timeline. The lender must review your application within 30 days. If any documentation is missing, the lender will call for the same from you. If your application is complete with all the required documents, the lender will send you a trial period plan notice if you qualify or inform you that you are ineligible for HAMP.
Getting Legal Help
If you are facing foreclosure, consult with an experienced foreclosure attorney to know more about the HAMP. The attorney can assist you with the application and documentation.
