Crash Course on The Home Affordable Modification Program

The Home Affordable Modification Program

In 2009, the federal government created the Home Affordable Modification Program (HAMP). It is designed to provide relief by reducing your mortgage payments to 31% of your pre-tax monthly income. Not all lenders participate in HAMP, but that doesn’t mean that you can’t work out a loan modification with them.


How can you qualify for a HAMP loan modification?

  •         You originated your mortgage on or before Jan. 1, 2009.
  •         You owe less than $729,750 for primary residence and single-unit rental properties or less than $934,200 for two-unit rental properties.
  •         You have sufficient documented income to support payments of a modified mortgage
  •         You have a serious financial hardship that has caused you to be delinquent or be in danger of becoming delinquent on your mortgage payments such as a loss of income, medical illness or divorce. You must support this hardship through documentation and sign an affidavit.


What documents will you need to provide?

  •         Proof of income such as recent pay stubs and the last 2 years tax returns
  •         A list of assets and liabilities along with supporting statements and documentation
  •         Documentation of your hardship and a signed affidavit


What do you do to start the process?

Call your mortgage servicer at the telephone number on your monthly mortgage statement and ask for a loan modification. You can still qualify for a loan modification if you are current on your mortgage payments as long as you can prove that you have a high likelihood of defaulting if the loan is not modified. For help and guidance, call your local HUD-approved counseling agency.

For a list of HUD-approved counseling agencies in NY, see:

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