The federal government instituted in 2009 the Home Affordable Modfication Program (HAMP) to attempt to help homeowners who were either facing foreclosure or who owed more on their mortgages than their home was actually valued. Since then, the program has developed in to serving several constituencies. Some help those with second loans; others aid the unemployed. Below are the different programs available and want each intend to achieve:
- Home Affordable Modification Program – implemented to enable homeownerrs that comply with the program’s standards to forego foreclosure by revising mortgage agreements in a fashion which borrowers can afford in the short-term and are sustainable after that.
- Home Affordable Unemployment Program – a supplemental to the Home Affordable Modification Program (HAMP), this program is available to unemployed individuals. Specifically, this program requires lenders or holders of mortgags to give previously-qualified but now nonworking homeowners a forbearance period during which a borrower’s monthly mortgage payment may be reduced or suspended.
- Second Lien Modification Program – intended to help borrowers struggling with their loan to reduce payments on second mortgages.
- Home Affordable Foreclosure Alternatives Program – for those that cannot meet HAMP modification standards with choices to avoid foreclosure through some kind of a short sale.:
- RD-HAMP – provides specific inducements under HAMP to eligible homeowners with RHS-guaranteed first lien mortgage loans to be revised under applicable RHS guidelines.
There are also 2 other programs for homeowners with FHA loans:
- Treasury FHA-HAMP – basically a program for HAMP modification for eligible borrowers with FHA-insured first lien mortgage loans; the new terms must comply with FHA regulations
- Treasury FHA/2LP – for borrowers who are current but who have negative equity on their home – because its value fell severely; under this plan, one can seek a FHA first lien mortgage after restructure
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