What is the Home Affordable Modification Program?

The government created a home affordable program as an alternative to provide assistance for homeowners’ affected by the collapse of the housing market. Many homeowners’ are experiencing a reduction in hours and loss of income. These types of losses are placing homeowners in jeopardy of losing their homes. The Home Affordable Modification Program may be able to lift the financial burden from financial duress. The Home Affordable Modification Program (HAMP) was specifically designed for homeowners’ who are unable to afford making their current monthly mortgage payments due to financial hardships.


In order to be eligible for this program, you must meet the following criteria:

  • Own a one- to four-unit property;
  • Have an unpaid balance;
  • Have a first lien mortgage originated on or before January 1, 2009;
  • Monthly mortgage payment is more than 31 percent of your gross income; and
  • Have a documented financial hardship to explain why mortgage payments are unaffordable.

If you feel that you meet all of the criteria, you can do a quick check online to confirm that you are eligible. The online application will tell you what to do next. Be sure to have your income and credit payments handy to complete all sections of the qualification process accurately.

Home Modification

Home modification is a process that is used by many mortgage lenders in order to assist individuals who are close to foreclosure. Generally, the mortgage company has a lot to lose when a mortgage loan goes into foreclosure, and it is in the company's best interest to prevent this from happening if at all possible.

This process allows the lender to agree to new terms with a borrower. In some cases, the lender will lower the amount of interest that is being charged, which will lower the monthly payment. In other cases, the lender will extend the repayment period also.

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