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Making Home Affordable An official program of the Departments of the Treasury & Housing and Urban Development

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Frequently Asked Questions

Questions on the basic concepts and challenges facing all homeowners seeking financial relief, organized into topics and programs for quick reference – refinancing, foreclosure prevention, loan modification and more.

These categorized questions and answers cover basic information about Making Home Affordable and more detailed information about MHA's most popular programs.

ABOUT SERVICERS

Question

Who is my "servicer?" Is my servicer the same as my lender or investor?

Answer

Your loan servicer is the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan. It is possible that the owner of your mortgage also services it, however many loans are owned by groups of investors and these investors hire loan servicers to interact with homeowners on their behalf. Many lenders also have the loan servicers handle all contact with homeowners.

Traditionally, banks used money deposited in customers' savings accounts to make loans. They held the loans, earning the interest as homeowners repaid over time. Banks were thus limited in the number of loans they could make because they had to wait to make new ones until savings deposits grew or existing homeowners repaid their loans. Many families who wanted to own a home were unable to do so because there was not a steady supply of money for banks to lend.

Over time, banks started to turn loans into cash by pooling large groups of loans together to create mortgage backed securities that could be sold to investors such as pension funds and hedge funds. The investors get the right to collect future payments and the bank gets cash that it can use to make more loans. Investors hire loan servicers to collect payments and interact with customers.

If you have questions about your loan, or you are behind on your payments, you should call your loan servicer at the number on your payment coupon or monthly mortgage statement.

Question

Is my servicer participating in HAMP?

Answer

All servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate. Additional servicers are strongly encouraged to participate. The list of servicer participants will be updated at www.MakingHomeAffordable.gov/get-assistance/contact-mortgage/. (See "How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac?")

Question

What should I do if my servicer tells me that the investor is not participating in the Making Home Affordable Program?

Answer

Check to see if your servicer is listed on our servicer participant list at www.MakingHomeAffordable.gov/get-assistance/contact-mortgage/. Keep in mind that all servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate with respect to those loans. (See "How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac?")

If your servicer is on our participant list, or your mortgage is owned or guaranteed by Freddie Mac or Fannie Mae, call your servicer back and ask to speak to a supervisor. You may also contact a HUD-approved housing counselor for assistance.

If your servicer is not participating in the Program, ask your servicer or a housing counselor about other options that may be available.

HOME AFFORDABLE REFINANCE PROGRAM (HARP)

Question

What are the interest rate and other terms of a refinance under HARP?

Answer

The rate will be based on market rates in effect at the time of the refinance and the homeowner will be subject to any associated points and fees quoted by your lender. Interest rates may vary across lenders and over time as market rates adjust. The refinanced loans must have no prepayment penalties or balloon payments.

Question

Can I get cash out of a HARP refinance to pay other debts?

Answer

No. The Home Affordable Refinance will not return cash to the borrower for the purpose of paying other debts.

Question

How do I apply for a refinance under HARP?

Answer

Call your mortgage lender, or any lender approved to do business with Fannie Mae or Freddie Mac, and ask for a Home Affordable Refinance application. The number is on your monthly mortgage bill or coupon book. Please be patient yet persistent. Your lender could be handling a large volume of inquiries about the program and it may take some time before they are ready to process your application. In the meantime, it will help your lender and speed up the application process if you gather some information and documents before you call. It will help your lender if you gather some information and documents before you call. Generally, you will need the following:

The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
The mortgage must have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009.
You must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past twelve months.
The current loan-to-value (LTV) ratio must be more than 80%.

Question

I am delinquent on my mortgage. Will I qualify for a refinance under HARP?

Answer

No. Homeowners must be current on the mortgage at the time of the refinance, with no late payments in the past six months and no more than one late payment in the past twelve months. Contact your servicer to see if a modification under the Home Affordable Modification Program is an option for you.

Question

Will I need mortgage insurance on a HARP refinance?

Answer

If your existing loan has private mortgage insurance, you will need the same amount of insurance coverage for a refinance under HARP. If your existing loan does not have private mortgage insurance, it will not be required as part of a refinance under HARP.

Question

How long will refinances under HARP be available?

Answer

The program expires on December 31, 2013. Your refinance under HARP must have a mortgage note date on or before that date.

Question

I'm current on my mortgage. Will a refinance under the Home Affordable Refinance Program (HARP) help me?

Answer

Eligible homeowners who are current on their mortgages but have been unable to take advantage of today's lower interest rates because their homes have decreased in value, may now have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage backed securities.

Question

How do I know if I am eligible for a refinance under HARP?

Answer

You may be eligible if:

You are the owner-occupant of a one- to four-unit home.
The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac (See "How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac?").
At the time you apply, you are current on your mortgage payments ("Current" generally means that you have not been more than 30 days late on your mortgage payment in the last 12 months; or, if you have had the loan for less than 12 months, you have never missed a payment).
The amount you owe on your first lien mortgage does not exceed 125% of the current market value of your property.
You have a reasonable ability to pay the new mortgage payments.
The refinance improves the long term affordability or stability of your loan. (See "Will refinancing lower my payments? How might HARP benefit me?")

Question

Will refinancing lower my payments? How might HARP benefit me?

Answer

The objective of a refinance under HARP is to provide creditworthy homeowners who have shown a commitment to paying their mortgage the opportunity to get into a new mortgage with better terms.

Homeowners whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Homeowners who are paying interest only, who have a low introductory rate that will increase in the future, or who face a balloon payment may not see their current payment go down if they refinance to a fixed rate and payment. These homeowners, however, could save a great deal of money by reducing the amount of interest you pay over the life of the loan.

Refinancing into a more stable fixed-rate loan product and avoiding future mortgage payment increases would likely improve your ability to sustain your mortgage payments over the long-term. When you submit a loan application, your lender will give you a "Good Faith Estimate" and a "Truth in Lending Statement" that includes your new interest rate, mortgage payment, and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

Question

Will a refinance under HARP reduce the amount that I owe on my loan?

Answer

No. The objective of a refinance under HARP is to help homeowners get into more stable or more affordable loans. Refinancing will not reduce the principal amount you owe to the first lien mortgage holder or any other debt you owe. (See "How will I know if a refinance under HARP will improve the long-term affordability or stability of my loan?")

Question

How will I know if a refinance under HARP will improve the long-term affordability or stability of my loan?

Answer

When you submit a loan application, your lender will give you a "Good Faith Estimate" and a "Truth in Lending Statement" that includes your new interest rate, mortgage payment, and the amount that you will pay over the life of the loan. Compare this to your current loan terms. If it is not an improvement, a refinancing may not be right for you.

Question

How do I know if my loan is owned or has been guaranteed by Fannie Mae or Freddie Mac?

Answer

Ask your mortgage lender or servicer. Also, both Fannie Mae and Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available. Homeowners can enter information to determine if either agency owns or guaranteed the loan. This information is not a guarantee of eligibility for a refinance under HARP, as other qualifying criteria must also be met.

For Fannie Mae:

1-800-7FANNIE (8am to 8pm EST)

www.FannieMae.com/loanlookup

For Freddie Mac:

1-800-FREDDIE (8am to 8pm EST)

www.FreddieMac.com/mymortgage

HOME AFFORDABLE MODIFICATION PROGRAM (HAMP)

Question

Can I get a mortgage modification through the Home Affordable Modification Program (HAMP) if my loan is not owned or guaranteed by Fannie Mae or Freddie Mac?

Answer

Yes. HAMP helps homeowners who are struggling to keep their loans current or who are already behind on their mortgage payments. By providing mortgage loan servicers with financial incentives to modify existing first lien mortgages, the Treasury hopes to help homeowners avoid foreclosure regardless of who owns or guarantees the mortgage.

Question

How do I know if I am eligible for a modification under the Home Affordable Modification Program (HAMP)?

Answer

To apply for a modification under HAMP, you must:

Be the owner-occupant of a one- to four-unit home.
Have an unpaid principal balance that is equal to or less than:
- 1 Unit: $729,750
- 2 Units: $934,200
- 3 Units: $1,129,250
- 4 Units: $1,403,400
Have a first lien mortgage that was originated on or before January 1, 2009.
Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

If you answered YES to all of these questions, you may be eligible for a modification under HAMP. Only your servicer will be able to tell you if you qualify.

Question

What if I am facing foreclosure?

Answer

Participating servicers may not refer a loan for foreclosure sale or proceed with a foreclosure sale on an eligible loan until the homeowner has been evaluated for HAMP and, if eligible, a trial modification offer has been made. Participating servicers must use reasonable efforts to contact homeowners facing foreclosure to determine their eligibility, including in-person contacts at the servicer’s discretion. Foreclosure sales may not be conducted while the loan is being considered for a modification or during the trial period. Additionally, once a homeowner has entered into a trial period plan by submitting the first trial period payment, the servicer may not take the first legal action to initiate a new foreclosure.

Question

I am unemployed. Can I still get a mortgage modification?

Answer

If you are unemployed, ask your servicer immediately for consideration through the Home Affordable Unemployment Program (UP). (See the FAQ “Home Affordable Unemployment Program (UP)”) for eligibility criteria and for more information.

If you are currently in a HAMP trial period and just lost your job, you may request to be considered for UP as long as you entered the trial period plan before missing three full consecutive mortgage payments.
If you are unemployed and were previously determined ineligible for a HAMP modification, you may be eligible for UP.

If you are currently in a permanent HAMP modification and just lost your job, you will not be eligible for UP. You may still be eligible for other foreclosure alternatives, including the Home Affordable Foreclosure Alternatives (HAFA). Please contact your servicer right away for more information. (See the FAQ “Home Affordable Foreclosure Alternatives Program (HAFA)”) While you are being evaluated for UP, servicers who have signed a HAMP Servicer Participation Agreement (SPA) are not permitted to refer you to foreclosure or conduct a foreclosure sale. Click here to find out if your servicer is a program participant.

Question

Do I need to be behind on my mortgage payments to be eligible for a modification under HAMP?

Answer

No. Responsible homeowners who are struggling to remain current on their mortgage payments are eligible if they reasonably believe they are very likely to default on their mortgage soon (often referred to by loan servicers as "imminent default"). This might be because a homeowner has had (or will have) a significant increase in the mortgage payment (due to a payment adjustment or rate adjustment upwards); unemployment or some other significant reduction in income; or some other financial hardship that will make the mortgage unaffordable. If you are facing a similar situation, contact your servicer. You will be required to document your income and expenses and provide evidence of the hardship or change in your circumstances

Question

I have a junior lien mortgage. Am I still eligible for HAMP?

Answer

Yes, the first lien mortgage is eligible for a modification under HAMP. (See the FAQ “Second Lien Modification Program (2MP)” for help with your 2nd lien.)

Question

How do I know if my servicer is participating in HAMP? Are all servicers required to participate?

Answer

Participation in HAMP is mandatory for servicers of loans owned or guaranteed by Fannie Mae or Freddie Mac (Government Sponsored Enterprises or GSEs). Participation in HAMP is voluntary for servicers of non-GSE loans. However, substantial incentives are available to servicers and investors who complete modifications under HAMP, and most major servicers already have committed to the Program. A current list of participating servicers is available here. Servicers not currently listed have until December 31, 2009 to opt into the Program.

Servicers of non-GSE loans sign a contract with Fannie Mae, as Treasury's financial agent, through which they agree to review every potentially eligible homeowner who asks to be considered for the Making Home Affordable Program. To ensure that a homeowner currently at risk of foreclosure has the opportunity to apply for a modification under HAMP, participating servicers may not proceed with a foreclosure sale until the homeowner has been evaluated for a HAMP modification and, if eligible, a trial modification offer has been made.

Question

Why does my loan servicer have to ask the lender or investor if they can do a loan modification through HAMP?

Answer

If the organization that services your loan does not own it, your servicer may need to get permission from the owner or investor before they can change any of the terms of your loan. Generally, there is a contract between the servicer and the investor that states what kind of actions the servicer is allowed to take. Most of these contracts, usually called servicing agreements or pooling and servicing agreements (PSAs), give the servicer flexibility to make modification decisions as long as the modification provides a better financial outcome for the lender or investor than not modifying the loan.

Question

Is the interest rate subject to change during the term of the HAMP modification?

Answer

If the modified rate is below the market rate as determined from the Freddie Mac Primary Mortgage Market Survey rate on the date the modification agreement is prepared, the modified rate will be fixed for a minimum of five years as specified in your modification agreement. Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the market rate at the time the modification agreement is prepared. Your rate can never be higher than the market rate as indicated in your modification agreement. If the modified rate is at or above the market rate at the time the modification agreement is prepared, the modified rate is fixed for the life of the loan.

Question

Will a modification under HAMP include property taxes and homeowners insurance?

Answer

Yes. All loans modified under HAMP must include an escrow account for payment of future property taxes and hazard insurance, unless prohibited by state law. If your existing loan does not include an escrow account, one will be established. A new escrow account may require collection of a sufficient reserve to pay the taxes and insurance on or before they are next due. The reserve amount cannot be added to the modified loan amount. The servicer may give you the option of paying the reserve amount at the time the loan is modified or the option of spreading the amount over a period of 60 months and including it in the monthly escrow payment.

Question

If I don’t currently have an escrow account on my mortgage, am I still eligible for a modification under HAMP?

Answer

Yes, you are still eligible to apply for a modification under HAMP. Should you qualify for a modification and make all trial payments on time, your modification agreement with your servicer will require the servicer to set aside a portion of your new monthly payment in an escrow account for payment of your property taxes and insurance premiums.

Question

If my mortgage qualifies for a modification under HAMP, will my escrow account payment change?

Answer

It might. Your escrow payment will adjust if your taxes and insurance premiums change, so the amount of your monthly payment that the servicer must place in escrow will also adjust as permitted by law.

Question

What will the servicer do through HAMP to get my new modified payment down to 31% of my gross income?

Answer

Lower the interest rate. Treasury is providing incentives to your servicer to write the interest down to as low as 2%, if necessary to get to a payment that you can afford. Each homeowner's interest rate will only be reduced to a point sufficient to get the modified payment to equal 31% of the homeowner's gross monthly income. Not all homeowners will need a rate reduction to 2% in order to achieve a monthly mortgage payment that is affordable.
Extend the term. If a 2% interest rate does not result in a payment that is affordable (no more than 31% of your gross monthly income), your servicer will extend your payment term. At the servicer's option, the term of the loan could be extended up to 40 years.
Forbear (defer) principal. If your payment is still not low enough, your servicer may defer a portion of the principal amount you owe until the maturity of the loan. This is called a principal forbearance. With a forbearance, you will still owe the principal; but repayment is deferred until a later date.

A portion of the principal could be also be forgiven. This is optional on the part of the servicer. There is no requirement for principal reduction or forgiveness, and there is no guarantee that your servicer will offer principal reduction or forgiveness.

Question

I owe more than my house is worth. Will a modification under HAMP reduce what I owe?

Answer

The primary objective of the HAMP is to help homeowners avoid foreclosure by modifying troubled loans to achieve a payment the homeowner can afford. Servicers may, but are not required to, offer principal reductions. It is more likely that your servicer will use interest rate reductions and term extensions in order to make your payment more affordable.

Question

What is a HAMP trial period?

Answer

The trial period is typically a three month period to see if the new payment plan will work for you, while providing you immediate relief and preventing any possible foreclosure sales from occurring. You should remember that during the trial, the terms and conditions of your original loan remain unchanged and only after you make all of your trial payments on time and send in all required documentation can your loan be officially modified.

Question

Could my payment change in or after the trial period?

Answer

Your payment will be based on 31% of your verified income. Your monthly payment could increase if property taxes, homeowner’s insurance, or homeowner’s association fees increase after the trial period.

Question

How will the HAMP modification affect my credit?

Answer

Accepting a loan modification can affect your credit score, but the actual effect will depend on a variety of factors. For more information about your credit score and how to improve it, visit www.ftc.gov/bcp/edu/pubs/consumer/credit/cre24.shtm.

Each month, servicers must describe to the credit reporting agencies the exact status of each mortgage. If you are current with your mortgage payments prior to the trial period and you make each trial period payment on time, your servicer must report you as current and also identify the loan as “modified under federal government plan.”

If you are delinquent (at least 30 days past the due date) prior to the trial period and the reduced payments do not bring the account current, your servicer must report the level of delinquency and also identify the loan as “modified under federal government plan.”

Question

How will I know if my loan can be modified though HAMP?

Answer

Once your servicer confirms that you are eligible and you make all of your trial period payments on time, you will receive a modification agreement detailing the terms of the modified loan. Any difference between the amount of the trial period payments and your regular mortgage payment will be added to the balance of your loan along with any other past due amounts as permitted by your loan documents. While this will increase the total amount that you owe, it should not significantly change the amount of your modified mortgage payment as that is determined based on your total monthly gross income, not your loan balance.

Question

Could I end up with a balloon payment through HAMP?

Answer

Yes. If your servicer determines that a principal forbearance is required to get your monthly mortgage payment to an affordable level, the principal forbearance amount, say for example this was $20,000, would be subtracted from the amount used to calculate your monthly mortgage payment, but you would still owe the money. You would have a $20,000 balloon payment that accrues no interest and was not due until you pay off your loan, refinance or sell your house.

Question

What happens if I am unable to make payments during the trial period?

Answer

Homeowners who are unable to make the required payments by the end of the trial period are not eligible for a permanent modification under HAMP. However, you may be eligible for other foreclosure prevention options offered by your servicer.

Question

How much will a modification cost me?

Answer

Homeowners who qualify for a modification under HAMP will never be required to pay a modification fee or pay past-due late fees. If there are costs associated with the modification, such as payment of back taxes, your servicer will give you the option of adding them to the amount you owe on your mortgage or paying some or all of the expenses in advance. Paying these expenses in advance will reduce your new monthly payment and save interest costs over the life of your loan.

If you would like assistance from a HUD-approved housing counseling agency or are referred to a HUD-approved counselor as a condition of the modification, you will not be charged a counseling fee. Homeowners should beware of any organization that attempts to charge an upfront fee for housing counseling or modification of a delinquent loan, or any organization that claims to guarantee success.

Question

Is housing counseling required for a modification under HAMP?

Answer

Homeowners, especially delinquent homeowners, are strongly encouraged to contact a HUD-approved housing counselor to help them understand all of their options and to create a workable budget plan. These services are free. Housing counseling is required, however, for homeowners whose total monthly debts are equal to or greater than 55% of their gross monthly income.

When you apply for a modification under HAMP, your servicer will analyze all of your recurring monthly expenses, including car loans, credit cards, child support, and what you will pay toward your mortgage. If the sum of all of these recurring monthly expenses is equal to or more than 55% of your gross monthly income, you must agree to participate in housing counseling provided by a HUD-approved housing counselor as a condition of getting a modification under HAMP.

Question

I heard the government is providing a financial incentive to homeowners through HAMP. Is that true?

Answer

Yes. Homeowners who make timely payments on their modified loans will receive success incentives. For every month you make a payment on time, you will accrue an incentive that reduces the principal balance on your loan. If your loan ceases to be in good standing (three monthly payments are due and unpaid on the last day of the third month), no further success payments will be paid, including accrued but unpaid amounts. The incentive will be applied directly to your loan balance annually—$1,000 each year—and over five years the total principal reduction could add up to $5,000. This contribution by the Treasury is designed to help you build equity faster.

Question

I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for a modification under HAMP?

Answer

No. If you own a house that you use as a vacation home or that you rent out to tenants, the mortgage on that house is not eligible to be modified under HAMP. If you used to live in the home but you moved out, the mortgage is not eligible. Only the first lien mortgage on your primary residence is eligible. The servicer will check to see if the dwelling is your primary residence. Misrepresenting your occupancy in order to qualify for this program is a violation of Federal law and may have serious legal consequences.

Question

I have a mortgage on a duplex. I live in one unit and rent the other unit. Will I still be eligible for HAMP?

Answer

Yes. Mortgages on two, three and four-unit properties are eligible as long as you live in one unit as your primary residence.

Question

Can FHA or VA loans be modified under HAMP? Are all loans eligible?

Answer

Most conventional loans including prime, subprime and adjustable loans, loans owned by Fannie Mae, Freddie Mac and private investors, and most loans in mortgage backed securities are eligible for a modification under HAMP. In July 2009, FHA launched the FHA-Home Affordable Modification Program to provide assistance to borrowers to modify their mortgages to provide more affordable payments. FHA-insured first lien mortgage loans that are modified under FHA-HAMP are eligible for certain incentive payments under HAMP. The Administration is working with FHA and VA on a program that would provide for modifications consistent with the Making Home Affordable Program. Currently, loans insured or guaranteed by VA are being modified under other programs.

Question

How do I apply for a modification under HAMP?

Answer

If you meet the general eligibility criteria for a modification under HAMP, you should gather the financial documentation that your servicer will need to determine if you qualify (See FAQ “What information and forms will I need in order to be considered for HAMP?”). Once you have this information, you should contact your servicer and ask to be considered for a modification under HAMP. The servicer's phone number and email address is on your monthly mortgage bill or coupon book. Please be patient yet persistent. Your servicer may be handling a large volume of inquiries about the program and it may take some time before your servicer is able to process your application.

If you would like to speak to a housing counselor, call 888-995-HOPE (4673). HUD-approved housing counselors can help you evaluate your income and expenses and understand your options, and apply to your servicer for HAMP. This counseling is FREE.

If you have already missed one or more mortgage payments and have not yet spoken to your servicer, call your servicer immediately.

Question

What information and forms will I need in order to be considered for HAMP?

Answer

Recently, Treasury announced a more streamlined homeowner evaluation process. Now, in order to apply for a Home Affordable Modification, homeowners can submit proof of income (See FAQ “What proof of income will I be required to provide with my HAMP application?”) plus the following two forms:

The MHA Request for Modification and Affidavit Form (RMA). This Form captures information on borrower income, expenses, subordinate liens on the property, and liquid assets. It includes a Hardship Affidavit, fraud notice, and information about the Trial Period Plan.
The Internal Revenue Service (IRS) Form 4506T-EZ (Short Form Request for Individual Tax Return Transcript). This form gives permission for your mortgage servicer to request a copy of the most recent tax return you have filed with the IRS. After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer.

Visit the “Request a Modification” section of MakingHomeAffordable.gov for more detailed information.

Question

What proof of income will I be required to provide with my HAMP application?

Answer

Be prepared to submit a copy of your two most recent pay stubs that show year-to-date earnings. If you are self-employed, you must provide your most recent quarterly or year-to-date profit/loss statement. Visit the “Request a Modification” section of MakingHomeAffordable.gov for more detailed information. If you cannot find the required documentation, or have questions about the paperwork required, please call 888-995 HOPE (4673) and ask for “MHA HELP.”

Question

I’m self-employed. How do I get a copy of my most recent quarterly or year-to-date Profit and Loss Statement?

Answer

Contact your CPA (Certified Public Accountant) or the licensed tax professional who assists you in completing your tax documentation.

Question

What types of documentation would be considered reliable enough to validate “Other Earned Income” for HAMP?

Answer

Other earned income (bonus, commission, fee, housing allowances, tips, overtime) must be documented by your employer in either your paystubs or other employment paperwork/contracts. Homeowners are encouraged to work with their employers to gather this information to describe the nature of the income and the continuity of the income.

Question

How do I get evidence of benefit income (e.g, social security, disability, death benefits, pension, public assistance, adoption assistance)?

Answer

You can provide a copy of benefit letters/statements, disability policy, or receipt of payments such as copies of two most recent bank statements showing electronic deposit of benefits. For additional information regarding social security, disability or death benefit income, contact Social Security directly toll-free at 1-800-772-1213 or visit their website at www.socialsecurity.gov. For all other benefits, you must contact the provider directly for additional information.

Question

How do I get evidence of unemployment benefits?

Answer

Evidence of unemployment income may currently be obtained through the Department of Labor UI benefit tool, which is available at www.ows.doleta.gov/unemploy/ben_entitle.asp.

After the Home Affordable Unemployment Program (UP) becomes effective on July 1, 2010, unemployment benefits and severance pay will no longer be acceptable sources of income for HAMP consideration. (See FAQ “Home Affordable Unemployment Program (UP)” for more information about help for unemployed homeowners.)

Question

My rental income was not reported on last year’s tax returns because the property was vacant. What documentation do I need to validate rental income?

Answer

In such cases where a property has recently been rented, a signed Rental Agreement contract must be provided to show: the property address, date of contract, lessees name and address, rental amount and rental period. The contract must be signed by all parties (lessor, lessee, rental agents etc.)

Question

How do I get a copy of my Divorce Decree, Separation Agreement or other legal written agreements filed with a court (e.g, alimony or child support)?

Answer

Gather the information listed below and contact the Office of Vital Statistics in the state where your divorce occurred. The homepage of the state’s website will provide a link/information on how to contact the office of Vital Statistics. Generally, the documentation needed may include, but is not limited to, the following:

Date of your divorce
Full name of spouse
Your driver’s license number
Purpose for which record is needed
Your name and address, together with a self-addressed, stamped envelope

Question

How long will modifications under HAMP be available?

Answer

HAMP expires on December 31, 2012. Your trial modification must be in place by that date.

Question

My loan is scheduled for foreclosure soon. What should I do?

Answer

Contact your servicer immediately and ask to be considered for HAMP. Servicers participating in the HAMP program are not allowed to proceed with a foreclosure sale until you have been evaluated for a modification under HAMP, and, if eligible, offer you a trial modification. You may also contact a HUD-approved housing counselor for help by calling the Homeowner’s HOPETM Hotline at 888-995-HOPE (4673).

SECOND LIEN MODIFICATION PROGRAM (2MP)

Question

How do I get help with my second mortgage?

Answer

The Second Lien Modification Program (2MP) is designed to work in tandem with the Home Affordable Modification Program (HAMP). Together, HAMP and 2MP create a comprehensive solution to help homeowners achieve greater affordability by lowering payments on both the 1st and 2nd liens.

Question

What do I need to do to be considered for 2MP?

Answer

Under 2MP, when a homeowner’s 1st lien is modified under HAMP and the servicer of the 2nd lien is a 2MP participant, that servicer must offer to modify or provide some level of extinguishment on the borrower’s second lien. The 2MP offer will be made in reliance on the financial information provided by the homeowner in conjunction with the HAMP modification and without additional evaluation by the second lien servicer.

HOME AFFORDABLE UNEMPLOYMENT PROGRAM (UP)

Question

What is the Home Affordable Unemployment Program (UP)?

Answer

The Home Affordable Unemployment Program (UP) provides homeowners a forbearance, which is a temporary period of time during which your regular monthly mortgage payment is reduced or suspended. Click here to find out if your servicer is a program participant and when they will make up available to homeowners.

Question

How do I know if I’m eligible for UP?

Answer

Participating servicers are required to offer an UP forbearance plan to you if you meet the minimum eligibility criteria:

The mortgage loan is secured by a one- to four-unit property, one unit of which is your principal residence.
The mortgage loan is a first lien mortgage loan originated on or before January 1, 2009.
Have an unpaid principal balance of the mortgage loan that is equal to or less than:

1 Unit: $729,750
2 Units: $934,200
3 Units: $1,129,250
4 Units: $1,403,400

The current unpaid principal balance of the mortgage loan is equal to or less than $729,750.
The mortgage loan is delinquent, or default is reasonably foreseeable.
The mortgage loan has not been previously modified under HAMP, and you have not previously received an UP forbearance period.

In order to be eligible, you must also:

Request that your servicer consider you for UP before three full mortgage payments are due and unpaid. Click here to find out if your servicer is a program participant.
Be unemployed when you request consideration for UP, and be able to document that you will receive unemployment benefits in the month of the forbearance period effective date.
Your servicer may require that you have been on unemployment benefits for up to three months before your forbearance period can begin.

Question

How do I apply for UP?

Answer

Contact your servicer immediately. You can phone, email, or write to your servicer to request an UP forbearance plan. Your servicer must be a participating HAMP servicer in order to offer the program. http://makinghomeaffordable.gov/get-started/contact-mortgage/to find out if your servicer is a program participant.

Question

How long is the UP forbearance period?

Answer

The UP forbearance period is at least three months long. It can be extended, however, depending on investor and regulatory guidelines. Contact your servicer for more information.

Question

What happens during the UP forbearance period?

Answer

During the UP forbearance period, your monthly mortgage payment must be reduced to no more than 31 percent of your gross monthly household income. Be sure sure to make these payments in a timely manner so as not to jeopardize your eligibility.

Question

What happens at the end of the UP forbearance period?

Answer

If you get a new job during the forbearance period, let your servicer know. Otherwise, 30 days before your forbearance period expires, your servicer will provide you with an Initial Package so that you can request a modification through the Home Affordable Modification Program (HAMP). Return the Initial Package immediately so that the servicer can formally evaluate you for HAMP.

Question

Is UP available for my 2nd mortgage?

Answer

No. UP can only be applied to a first mortgage.

Question

What if I’m not eligible for UP?

Answer

If you are determined to be ineligible for HAMP, the servicer will consider you for other home retention options. If homeownership is no longer an affordable or desirable option, the servicer will consider you for additional foreclosure avoidance programs, including Home Affordable Foreclosure Alternatives Program (HAFA).

Question

What other alternatives to foreclosure exist within the Making Home Affordable Program?

Answer

The Making Home Affordable Program will include additional foreclosure avoidance options through the Home Affordable Foreclosure Alternatives (HAFA) Program. The primary options available through HAFA include Short Sale and Deed-in-Lieu of Foreclosure.

HOME AFFORDABLE FORECLOSURE ALTERNATIVES PROGRAM (HAFA)

Question

How does the HAFA Short Sale work?

Answer

In a Short Sale, the homeowner sells the property for less than the full amount due on the mortgage. When a homeowner qualifies for the HAFA Short Sale, the servicer approves the Short Sale terms prior to listing the home and then accepts the payoff in full satisfaction of the mortgage.

Question

How does the HAFA Deed-in-Lieu of Foreclosure work?

Answer

With the Deed-in-Lieu of Foreclosure, the homeowner voluntarily transfers ownership of the property to the servicer in full satisfaction of the total amount due. The servicer may require that the homeowner list and market the property before they agree to a deed-in-lieu arrangement. In order for the Deed-in-Lieu of Foreclosure to work, the homeowner must provide a marketable title, free and clear of other mortgages, liens, or other encumbrances.

Question

How can I be considered for HAFA?

Answer

Homeowners must be evaluated for HAFA within 30 calendar days of the following:

The borrower does not qualify for HAMP.
The borrower does not successfully complete a HAMP Trial Period.
The borrower is delinquent on a HAMP modification.
The borrower requests a short sale or Deed-in-Lieu of Foreclosure.

However, before evaluating a homeowner for HAFA, a participating servicer must first consider that homeowner for other loan modification or retention programs that they offer. In addition, pursuant to the servicer's policies, every eligible homeowner must be considered for HAFA by a participating servicer before the homeowner’s loan is referred to foreclosure and before the servicer may allow a pending foreclosure sale to continue.

BEWARE OF FORECLOSURE RESCUE SCAMS - HELP IS FREE

Question

What are some of the warning signs of scams or fraud?

Answer

There should never be a fee for assistance with or information about the Making Home Affordable Program.
Beware of any person or organization that asks you to pay an upfront fee in exchange for a counseling service or modification of a delinquent loan. Do not pay – walk away!
Beware of anyone who says they can "save" your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
Never make your mortgage payments to anyone other than your mortgage company without their approval.
The Obama Administration has launched a coordinated effort across federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times.

Question

What should I do if I’ve been scammed?

Answer

First, get the help you need to avoid foreclosure. Contact your servicer immediately.
Contact a HUD-approved housing counselor through the Homeowner’s HOPE Hotline at 888-995-HOPE (4673).
To learn about foreclosure rescue or loan modification scams, go to www.LoanScamAlert.org or www.ftc.gov/MoneyMatters. To file a complaint or to get free information on fraud and other consumer issues, call the Homeowner’s Hope Hotline at 1-888-995-HOPE (4673) or contact the Federal Trade Commission at www.ftc.gov/consumerprotectionor 877-FTC-HELP (4357).

Last Updated: 12/23/2011 10:29 AM

Help is a Phone Call Away

888-995-HOPE (4673)
Hearing impaired: 877-304-9709 TTY

As you enter a process that can sometimes be overwhelming, it would be in your best interest to engage a housing expert to help you along the way. Let a HUD-approved housing counselor help you understand your options, prepare your application, and work with your mortgage company.

Homeowner's HOPE™ Hotline

Hear it from Homeowners

Curtis and Darlene, Chicago IL

Curtis and Darlene of Chicago, IL

Curtis and Darlene had lived in their home for 35 years when Curtis lost his job. That’s when MHA helped them cut their mortgage payments in half.

See their story (PSA)

Beware of Scams

Unfortunately, and far too often, homeowners looking for mortgage help end up victimized by scam artists. Know the warning signs to protect yourself, your money, and your home.

Get tips to avoid scams.

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