HAMP stands for “Home Affordable Modification Program.” Banks who received TARP funding from the government during the bailout are required to review homeowners facing foreclosure for a loan modification through the HAMP program. Also, Homeowners with Fannie Mae or Freddie Mac backed loans are eligible for the HAMP program.
A HAMP modification can:
- Reduce your monthly mortgage payment to 31% of your gross monthly income.
- Reduce your interest rate to as low as 2% for the first 5 years.
- Extend your amortization period to stretch out loan payments.
- Give you $5,000 toward your principle loan balance if you make all the new monthly payments on time for the first five years.
To be eligible for a HAMP:
- You are ineligible to refinance
- You are facing a long-term hardship
- You are behind on your mortgage payments or likely to fall behind soon
- Your loan was originated on or before January 1, 2009 (i.e., the date you closed your loan)
- Your loan is owned by Fannie Mae or Freddie Mac –or is serviced by a participating mortgage company. You can click the links to look up your loan and see if you are eligible.
For more information on a HAMP modification, call Rod Williams at 615-850-3453. Rod Williams is the Senior Housing Counselor with the Woodbine Community Organization, a HUD-approved Housing Counseling agency.