The HAMP — Who Qualifies?

Thu, Nov 4, 2010

Financial Advice

Hi NeedMoney readers,

I want to follow up on my last post about the HAMP (Home Affordable Modification Program). Hopefully these posts don’t apply to many of you in that you have been able to remain current on your mortgage. However, the odds unfortunately are that quite a few of you are either facing foreclosure now, or will be in the near future. The HAMP is one program which can keep you in your home — but you have to proactively pursue this relief. So who qualifies for help under this program? The following are the main criteria which decide whether or not you are eligible:

– Your mortgage must have been taken out prior to January 1, 2009

– Your mortgage can not have a principal balance of over $729,750

– The mortgage must be on your primary residence

– You must be able to fully document all of your income sources

– You must swear to an official statement of financial hardship

– Your mortgage can not have been previously modified under the HAMP

If you meet all of these tests, then you very well could have both your principal balance — as well as your monthly payment amount — reduced. If you feel that you do qualify, then the first step is to contact your lender and ask if they are participating in the HAMP. If so, then ask for the party at your lender who is handling modification requests pursuant to the HAMP. Be prepared to wait on hold, and have all documentation surrounding your mortgage organized. On my next post here at NeedMoney, I shall dive into the most confusing facet of the HAMP — what can the HAMP actually do for you?

James

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