How do you qualify for a HAMP loan modification?


Quick Answer

Eligibility requirements for the Home Affordable Modification Program include financial hardship, delinquency on a current mortgage, and the mortgage must have been created before January 1, 2009, notes Making Home Affordable. Additionally, the property cannot have been condemned.

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Full Answer

HAMP is a program created as part of the plan to stabilize the housing market in the United States as put forth by the Obama Administration, notes the MHA website. The goal of the program is to offer solutions for distressed homeowners and offer them a path to avoid foreclosure. There are several modification programs available, including HAMP programs for traditional, FHA and VA mortgages. HAMP modifications are specifically geared toward lowering the monthly payments of mortgages.

Applying for relief via HAMP can be intimidating, but there are housing experts to help guide consumers through the process, explains the MHA website. Many of the main mortgage lenders, such as JP Morgan Chase, Bank of America and Wells Fargo, participate in MHA programs, as of 2015.

Other programs offered by MHA include interest-reducing programs for traditional mortgages, second mortgages and mortgages with negative equity, notes MHA. Other programs allow consumers to transition out of their home, and avoid foreclosure and principal reduction programs.

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