Federal Mortgage Modification

There are federal mortgage relief programs that can help homeowners refinance or change the terms of their mortgage loan, resulting in more affordable monthly payments.

The Home Affordable Modification Plan (HAMP), part of the Making Home Affordable plan to stabilize the housing market, allows you to reduce your monthly loan payments by lowering the interest rate, extending the life of the loan and lowering the loan principal.

According to the Treasury Department, “HAMP is a voluntary program that supports servicers’ efforts to modify mortgages, while protecting taxpayers’ interests. To protect taxpayers, MHA housing initiatives have pay‐for‐success incentives. This means that funds are spent only when transactions are completed and only as long as those contracts remain in place. Therefore, funds will be disbursed over many years.”

HAMP has established strict eligibility requirements for homeowners and rigorous guidelines for mortgage lenders. The program offers homeowners, lenders, and investors incentives to promote mortgage modifications.

On average, homeowners are able to reduce their monthly payments by more than $530 a month. Prior to HAMP, there were no standard stipulations for lenders or investors on how to help homeowners in need of mortgage assistance.

The HAMP program has established clear mortgage modification guidelines for the entire mortgage industry with almost 5 million Americans receiving mortgage assistance to prevent foreclosures.

Federal Mortgage Modification

There are federal mortgage relief programs that can help homeowners refinance or change the terms of their mortgage loan, resulting in more affordable monthly payments.

The Home Affordable Modification Plan (HAMP), part of the Making Home Affordable plan to stabilize the housing market, allows you to reduce your monthly loan payments by lowering the interest rate, extending the life of the loan and lowering the loan principal.

According to the Treasury Department, “HAMP is a voluntary program that supports servicers’ efforts to modify mortgages, while protecting taxpayers’ interests. To protect taxpayers, MHA housing initiatives have pay‐for‐success incentives. This means that funds are spent only when transactions are completed and only as long as those contracts remain in place. Therefore, funds will be disbursed over many years.”

HAMP has established strict eligibility requirements for homeowners and rigorous guidelines for mortgage lenders. The program offers homeowners, lenders, and investors incentives to promote mortgage modifications.

On average, homeowners are able to reduce their monthly payments by more than $530 a month. Prior to HAMP, there were no standard stipulations for lenders or investors on how to help homeowners in need of mortgage assistance.

The HAMP program has established clear mortgage modification guidelines for the entire mortgage industry with almost 5 million Americans receiving mortgage assistance to prevent foreclosures.

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