Miami Real Estate: How HAMP Can Help

If you are having difficulty paying your mortgage, or you are upside-down on your mortgage, the Home Affordable Mortgage Program (HAMP) might be able to help. HAMP is a government program that helps people who have increased expenses or decreased income stay in their homes. If you find yourself unable to pay your mortgage, or are behind in your payments, here is information about the program and whether or not you are eligible.

Am I Eligible?

Almost all large banks are a part of HAMP. Banks and mortgage servicers such as Bank of America, Chase, and Wells Fargo are participating in the program, as are many smaller banks. If your mortgage is with Fannie Mae or another government-backed program, ask your servicer which program would be best for you.

You are eligible for HAMP if you meet the following qualifications:

  • You are unable or struggling to make your mortgage payments
  • You are severely behind in payments or facing foreclosure
  • You acquired your mortgage before January 1, 2009
  • You owe less than $729,750 on your residence or one-to-four unit rental property
  • You have not been convicted of a mortgage-related crime in the last 10 years.

What Is the Application Process?

The application process is fairly easy, but will take some time to make sure your application is completed correctly. If you fail to provide certain information, your application will be rejected.

You must fill out the required “Request for Mortgage Assistance” application packet. To complete this, you will need to be organized and have all your financial information available. This will include tax returns, pay stubs, utility bills, and proof of any other expenses. Again, it is important you supply all the information requested by MHA, Making Home Affordable.

What If I Am Approved?

If you are approved, you will be given a new payment amount, and you will be required to make this payment for a 3-month trial period. If you fail to make these payments, the modification will be cancelled. Therefore, it is essential you use good money management skills so you don’t lose this opportunity to modify your mortgage.

Losing your home is something you want to avoid at all costs. Luckily, HAMP is a fantastic opportunity for those homeowners who still have an income, but are unable to catch up on back payments. If you are interested in the program and would like additional information, please contact us today!