What is HAMP
The Home Affordable Modification Program (HAMP) is a program designed to help struggling homeowners lower their existing mortgage payments. HAMP is part of the federal Making Homes Affordable (MHA) program designed to help stabilize the U.S. Housing Market.
What are the Qualifications?
There are some basic requirements you must meet in order to qualify for HAMP:
1) Your mortgage was obtained on or before January 1, 2009.
2) You owe less than $729,750 on your primary residence or single unit rental property
3) You owe less than $934,200 on a 2-unit rental property; $1,129,250 on a 3-unit rental property; or $1,403,400 on a 4-unit rental property
4) The property has not been condemned
5) You can document a financial hardship and are delinquent in your payments or in danger of delinquency
6) You can verify that your current income can support a modified mortgage payment
7) You must not have been convicted within the last 10 years of any mortgage or real estate felony
Different Lenders, Different Rules
Not all lenders participate in the HAMP program, however they may offer their own loan modification program if they do not participate or if you do not qualify for HAMP.
Your lender may also have recommended solutions if your mortgage is owned, insured or guaranteed by Fannie Mae, Freddie Mac, USDA, VA, or FHA.
If you carry a second mortgage on your property, there may also be specific loan modification programs available to you.
What if I Don’t Qualify?
Since the HAMP program requires that you have sufficient income to support a modified mortgage payment, it is not the solution for everyone. If you don’t have a job or have another financial crisis, you may not have the option of keeping your home.
For individuals who fall in this category, the HAFA short sale program may be a good alternative.
Short Sale Facilitators work with homeowners every day who are struggling with job losses or other personal financial hardships. Sometimes people don’t know what to do and they just wait hoping something will change for the better. Alma Korshak tells her clients to be proactive. Don’t wait for the foreclosure paperwork to show up in the mail. Alma has seven years of short sale experience, and she knows that by listing your home as a short sale, lenders know you are trying.
“Because you’re showing the bank you’re showing them good faith when you actually do list that property with a short sale associate. It just shows good faith on your part. That you’re going to do what you need to do and as long as you have a hardship and they know you have hardship. You know usually you’re OK. “
I Need Help
Government programs for loan modifications and short sales can be complex and confusing. That is why Alma recommends you come into the Casselberry Florida office and meet with the team at Short Sale Facilitators just to find out what your options are.
“Schedule an appointment and we will go through all of the documents all they need to do is go to the checklist. We have a checklist and in that checklist it tells, it shows what the seller is going to need to bring to us or what they need to provide us with to start the short sale process but I would much rather sometimes have them come in bring everything. Bring everything and then we could sit here with them and we can do it together.”
It is not always easy to understand, but don’t suffer in silence. Call Short Sale Facilitators and get the answers you need. Alma and her team will help you figure out the programs you qualify for and they will be there to answer all your questions and work through the entire process with you.