The final deadline for HAMP (“Home Affordable Modification Program”) is rapidly approaching: applications for this federal program are due December 30, 2016.
HAMP is a federal program aimed at helping struggling homeowners avoid foreclosure. Eligible homeowners can obtain a loan modification through a combination of an interest rate reduction, term extension, and principle forbearance. Applying for HAMP requires proof of income, a variety of tax and financial documents, and a hardship affidavit (showing a reason why the homeowner cannot make their normal loan payments).
HAMP, to say the least, has been a nightmare: servicers routinely lose paperwork, delay reviewing modifications, and deny applications for false and ambiguous reasons. Despite its shortfalls, HAMP remains one of the best options for homeowners trying to avoid foreclosure. With this in mind, homeowners in need of loss mitigation assistance should make a note of the deadline for HAMP and submit an application as quickly as possible.
The deadline for HAMP has been extended in the past and I wouldn’t be surprised if that happens again. However, homeowners should assume that it won’t be extended, and get prepared to submit an application well before the December 30, 2016 deadline. Don’t procrastinate! A HAMP application requires an enormous amount of time and collection of documents. You do not want a loan servicer to deny your application on the grounds that your application was not submitted in time (a reason for denial that, unfortunately, I see occurring for many homeowners who will apply at the end of the year).
When applying for HAMP (or any other loan modification program), be sure to keep a paper trail of your application process. If you find yourself not getting the results you need, contact a foreclosure defense attorney for assistance.