Mortgage Modification defined: A loan modification is a permanent restructuring of the mortgage where one or more of the terms of a borrower’s loan are changed to provide a more affordable payment. With a loan modification, the lender may agree to do one of more of the following to reduce your monthly payment: reduce the interest rate.
Are you eligible?
If you are having a tough time making your mortgage payments, you may be eligible for MHA’s Home Affordable Modification Program also know as “HAMP®.” HAMP is designed to provide deep and meaningful savings for homeowners devastated by unaffordable increases in expenses or reductions in income.
Do you meet the following criteria?
- Because of a financial hardship, you are struggling to make your mortgage payments.
- You are delinquent or in danger of falling behind on your mortgage.
- You obtained your mortgage on or before January 1, 2009.
- Your property has not been condemned.
- You owe up to $729,750 on your primary residence or one-to-four unit rental property (loan limits are higher for two- to four-unit properties).
- You have not been convicted within the last 10 years of a crime in connection with a mortgage or real estate transaction.
Who can I talk to?
Many mortgage companies participate in MHA Programs. If your mortgage is owned, insured, or guaranteed by Fannie Mae, Freddie Mac, Federal Housing Administration (FHA), Veterans Affairs, or U.S. Department of Agriculture (USDA), ask your mortgage company which solutions will work best for you.
Source: Making Home Affordable