Loan modification program expands access to struggling homeowners

More homeowners now eligible for HAMP. Struggling homeowners who are currently employed, have been previously denied by HAMP and landlords should apply for assistance.

If you are employed but still struggling to make your mortgage payments, you may be eligible for the Home Affordable Modification Program (HAMP). Some landlords may also qualify. HAMP may lower your monthly mortgage payments in order to make them more affordable and sustainable for the long-term. It’s now easier to qualify for a HAMP. If you previously applied and were denied, try applying again.

If you currently occupy your home as your primary residence, Michigan State University Extension encourages you to contact your mortgage servicer as soon as possible to begin the HAMP evaluation process.

In an effort to continue to provide meaningful solutions to the housing crisis, last June the government has expanded the number of homeowners who may be eligible for HAMP. The expansion includes:

  • Homeowners who are applying for a modification on a home that is not their primary residence but the property is currently rented or the homeowner intends to rent it.
  • Homeowners who previously did not qualify for HAMP because their debt-to-income ratio was 31 percent or lower.
  • Homeowners who previously received a HAMP trial period plan but defaulted in their trial payments.
  • Homeowners who previously received a HAMP permanent modification but defaulted in their payments, therefore losing good standing.

If you are a homeowner who falls into any of these criteria, you may be eligible for a modification under the expanded criteria. Please check with your mortgage servicer to see if you are eligible to begin the HAMP evaluation process.

MSU Extension provides free housing counseling at its Macomb, Lapeer, Ionia and Washtenaw County offices to surrounding areas. Michigan State Housing Development Authority-certified housing counselors may be located using the MSHDA website.

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