For years, the Home Affordable Modification Program (HAMP) provided a potential for relief for struggling homeowners to cure a default and to prevent the foreclosure of their home by their mortgage lender. HAMP was first enacted in 2009 as part of the Making Home Affordable (MHA) program in reaction to the subprime mortgage crisis.
Homeowners who were having difficulty affording their mortgage payments due to financial hardship could qualify for a modification of the mortgage loan through HAMP if they met certain criteria. Among the elements of a mortgage loan that could be modified through HAMP include lowering the interest rate, forbearance or reduction of the principal balance, and extending the term of the loan. In many situations, such a modification resulting in significantly more reasonable mortgage payments and allowed homeowners to retain ownership of their properties.
After helping millions of homeowners throughout
