HAMP Eligibility Guidelines (Part A)
If you are one the many Florida homeowners having trouble making your mortgage payments, you should consult with a South Florida attorney with experience in foreclosure law to discuss the Home Affordable Modification Program (HAMP). The goal of this program is to provide homeowners a possible alternative to foreclosure.
Eligibility Requirements to Apply for HAMP
You must meet certain criteria before you can apply for a HAMP loan modification.
- you must be the homeowner as well as the occupant of a 1- to 4-unit home;
- your principal balance must be no more than $729,750 for 1 unit, $934,200 for 2 units, $1,129,250 for 3 units and $1,403,400 for 4 units;
- your mortgage must be a first lien that originated no later than January 1, 2009;
- your mortgage payment, which includes taxes, homeowner’s association fees and insurance, must be 31% higher than your monthly gross income; and
- you must have proof that your financial difficulties have made your mortgage payments unaffordable.
If you meet each of the above application requirements, you are on your way to HAMP eligibility. If you’re uncertain about whether you meet these requirements, your South Florida attorney can answer any questions you may have about the HAMP program and if it may help you avoid a home foreclosure in South Florida.
HAMP Financial Hardship Criteria
It’s not required that you be behind on your mortgage to qualify for HAMP. As long as you have reason to believe that you are in danger of “imminent default,” meaning you will fall behind, you could be eligible for HAMP. Your hardship could be related to the loss of a job or a payment adjustment. Your South Florida attorney can evaluate your situation to see if you do have the necessary criteria to prove financial hardship.
In the event that you face a home foreclosure, your loan servicer should wait until you have been evaluated for HAMP before moving forward with the foreclosure. After all, your loan servicer is receiving financial incentives to modify a first lien mortgage.
Your loan servicer should make efforts to contact you to determine HAMP eligibility. While your loan is being considered for a home loan modification, any foreclosure proceedings must come to a halt. You may want a South Florida attorney with foreclosure experience on your side to help you through this endeavor.