In March, 2009 the Obama administration announced a new program with the goal of slowing foreclosures and keeping more homeowner’s in their homes. The program, called the Home Affordable Modification Program (HAMP), generally requires lenders to participate in counseling programs with borrowers and encourages those lenders to agree to terms that will allow a homeowner to stay in their home in most cases.
The program has wide application and all Fannie Mae and Freddie Mac approved servicers are ordered through their servicing guides and bulletins to implement HAMP with respect to ” mortgage loans owned, securitized, or guaranteed by Fannie Mae or Freddie Mac (the ” GSE Loans”). Details of the program may be found at Frequently Asked Questions which provides information about the new program.
Mortgage modification activity dropped 5.1% in June, while repayment plans jumped 44.9%, according to the HOPE NOW Alliance’s most recent monthly data. In total, more than 310,000 homeowners completed workouts during the month ““ a 25% increase over May.
Most homeowners should qualify for a HAMP Modification. If your lender has not offered you the opportunity to apply for a HAMP modification or if you have questions about how the program operates, visit my website at www.mattweidnerlaw.com!