The Home Affordable Modification Program (HAMP) was created in 2008 by the federal government to assist homeowners who were facing temporary economic difficulties. The program was designed to lower homeowners monthly mortgage payments to make them more affordable.
Homeowners who received a HAMP loan modification between 2008-2011 are due for an interest rate increase. Loan modifications that were created during that time had a stipulation indicating that five years from the program’s implementation there would be a rate increase. This increase is to be applied by all banks and servicers by April 1, 2014.
If your loan was included in this group, you should have already received a notice from your servicer. The goal for this program was to allow homeowners to keep their home while giving them the opportunity to get back on their feet. While five years may have seemed lengthy, the economy has yet to fully recover, leaving some homeowners unable to pay the higher mortgage amount.
If you fall into this category, it may be reassuring to know that there are still options and you may qualify for another modification or refinance. The Graham Legal team has a strong focus on obtaining loan modifications for our clients.
Many of our clients want to keep their homes and having the mortgage payment adjusted will often be in the best interest of both the homeowner and the bank. If you are unable to keep up with your newly increased mortgage payments, schedule an appointment with our loan modification experts so that we can discuss options.