Asian Journal- The Filipino-American Community Newspaper

TheUS Treasury Department reported last September 24, 2009, that the Home Affordable Modification Program (HAMP) of the Obama Administration is making progress. There are 57 servicers (Banks and Mortgage companies) who contracted with the government to do loan modification. These servicers committed a cumulative target of 500,000 trial modifications by November 1, 2009. As of September 9, 2009, there are 360,000 trial modifications that are underway out of the 570,000 trial modifications that have been offered to borrowers under this program. About 85% of the loans in the country are covered by this program.

Answer: It is a government assistance to loan servicers (banks) and investors to help offset the cost of modifying homeowner’s mortgages into affordable mortgages that will allow them to keep their homes. This may be done by reducing mortgage interest rate, extending the term of the loan, principal reduction if necessary. The program begins in March 4, 2009 until December 31, 2012.

Answer: You may qualify if:

• The home is a one to four unit property that is your primary residence and owner occupied.
• Your existing mortgage was originated on or before January 1, 2009.
• The property may not be investor-owned.
• The property may not be vacant or condemned.
• You are not able to pay your existing debt without help.
• Your total monthly mortgage payments are more than 31 percent of your gross monthly income.
• You are at risk of foreclosure due to a significant increase in mortgage payment, a reduction in income since the current loan was created, or a hardship that has increased your expenses. (Ex. Medical bills).
• You owe an amount equal to or less than $729,750 on the first mortgage (higher units are allowed for an owner occupied property that is two to four units).
• You may be in bankruptcy.