If you can no longer afford to make your monthly loan payments, it is possible that you can qualify for a HAMP loan modification to make your monthly mortgage payment more affordable. HAMP stands for Home Affordable Modification Program and it offers eligible borrowers the opportunity to modify their loan to lower their monthly mortgage payment to 31 percent of their verified gross (pre-tax) income to make their payments more affordable.
If you are currently having difficulty making your payments, even if you have missed one or more payments, you may be eligible for the Making Home Affordable HAMP option.
To be eligible for HAMP, the following four items must apply to you:
Own a one- to four-unit home that is your primary residence
Have received your mortgage on or before January 1, 2009;
Have a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31 percent of your gross (pre-tax) monthly income; and
Owe an amount that is less than or equal to $729,750 on your first mortgage for a one-unit property (there are higher limits for two- to four-unit properties).