What is the Home Affordable Modification Program (HAMP)?

Created by the federal government to help employed homeowners who are having difficulty making mortgage payments on their home, the Home Affordable Modification Program (HAMP) may be able to lower house payments for Arizona homeowners by as much as 31 percent of their gross monthly income. Even if you are planning to file or have already filed for Chapter 7 or Chapter 13 bankruptcy, you may be eligible for the benefits of the HAMP plan.

Due to the continued financial difficulties experienced by millions of homeowners in Arizona as well as the rest of the U.S., the government is expanding the HAMP program beginning in June of 2012. Under these new regulations, struggling homeowners in bankruptcy or considering bankruptcy already involved in HAMP or want to apply for HAMP will be assessed and potentially offered solutions to an impending foreclosure based on monthly income and amount of debt ratio.

According to new HAMP guidelines, triple balance-reduction incentives will exist that pays between 18 cents and 63 cents for every dollar taken off a mortgage principle by lenders. This is a substantial increase from the previous six cents and 21 cents included in the old HAMP program. Additionally, the Treasury department states that it is going to give reduction incentives to Freddie Mac and Fannie Mae if they permit lenders to absolve principle under the new HAMP program.

Modification of the HAMP program means that homeowners may be able to adjust mortgage amounts to more affordable amounts, even if they do not meet the previous debt-to-income requirement of 31 percent. In addition, struggling Arizona homeowners who rent or are not presently occupying a home in foreclosure can apply for HAMP under the new guidelines.

If you were previously denied help from the Home Affordable Modification Program or were released from the program due to missing payments, now is your time to re-apply according to new regulations governing the HAMP program. Obtain immediate assistance if you are experiencing financial difficulties and considering bankruptcy by contacting a professional Arizona bankruptcy attorney who can help save your home and provide relief from financial stress.

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

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