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Loan Modifications

Now is the best time to modify your mortgage. Whether the property is your homestead or investment, you may be entitled to a reduction of the amount owed.

We assist homeowners trying to avoid losing their home through foreclosure under the Making Home Affordable Program. The Home Affordable Modification Program (HAMP) was introduced in March 2009 as a key component of the Making Home Affordable Program. Since that time, several programs have been updated or added to the original HAMP program to address other lending and servicing needs beyond primary modifications or refinances.

The Home Affordable Modification Program (HAMP) provides eligible borrowers the opportunity to modify their first lien mortgage loans to make them more affordable. Under HAMP, servicers apply the uniform loan modification process to provide eligible borrowers with affordable and sustainable monthly payments for their first lien mortgage loans. Affordability is achieved through the application of interest rate reduction, term extension, and most importantly, principal forbearance and principal forgiveness.

The Home Affordable Unemployment Program (UP) provides assistance to borrowers who are unable to make their mortgage as a result of unemployment. UP grants qualified borrowers a forbearance period of at least three months during which mortgage payments are reduced or suspended allowing borrowers to seek employment without the fear that they will lose their home to foreclosure.

The Home Affordable Foreclosure Alternate Program (HAFA) provides opportunities for borrowers to transition to more affordable housing through a short sale or deed in lieu of foreclosure when they can no longer afford to stay in their home but want to avoid foreclosure.

Second Lien Modification Program (2MP) is designed to work in tandem with HAMP to offer borrowers with second mortgage liens even greater affordability. Under 2MP, when a borrower's first lien is modified under HAMP and the servicer of the second lien is a 2MP participant, that servicer must offer to modify the borrower's second lien according to a defined protocol and/or to accept a lump sum payment from Treasury in exchange for full or partial extinguishment of the second lien.

In-House Work-Outs. Even if the borrower does not qualify for relief under HAMP, we can assist homeowners with an in-house work-out with the lender. Recently, we have seen a change in the direction that many lenders were heading. Instead of aggressively foreclosing its customers' home, many lenders are now willing to do workouts by modifying the loan. Some lenders are waiving or deferring a portion of the principal in order to make the loan affordable.