Unfortunately, there are now millions of Americans at risk of losing their homes. Borrowers today are becoming delinquent for a number of different reasons. Maybe you are a victim of the wave of unscrupulous loans written between 2001 and 2006. Many of these loans were designed to fail, and the rate resets proved impossible to meet. Other of you may have simply been the victim of overpaying for your home during the 2005-2007 housing bubble, and now you find your home value substantially upsidedown against your outstanding mortgage. Others are victims of the weak economy and unemployment rate which has been hovering just under 10%. Whatever the reason, there are programs out there which can help you navigate your current mortgage dilemma. The primary program within this arena is called the Home Affordable Mortgage Program — otherwise known as HAMP.
The HAMP was initiated in 2009 as a component of the Financial Stability Act. Over 100 lenders have signed on to this program, and it aims to keep you in your home. The FHA and VA are also participating within the HAMP, so if your mortgage is with one of those two entities — or any participating bank — you might be eligible for relief under this program. Unfortunately, as with most all government programs, dealing with the process for seeking relief pursuant to the HAMP can be quite complex. Many homeowners facing foreclosure could be helped by the HAMP — but they just don’t know it. If you are currently delinquent — or will be in the near future — the HAMP should be your first line of defense against foreclosure. I will be posting follow up pieces describing who qualifies for the HAMP, and how the process works.