While things have improved economically over the last few months, some folks are still having trouble making their monthly mortgage payment. They’ve applied for and been denied help from their own mortgage servers and don’t know where to turn now. The Obama administration developed the HAMP plan specifically to help these people. The following will respond to the question what is HAMP loan modification? So everyone will know what to ask for when seeking assistance for their mortgage payments.

Phoenix, AZ -- (SBWire) -- 12/31/2012 --When the HAMP (home affordable modification program) plan was first developed in 2008, its goal was to help struggling homeowners come up with a way to lower their mortgage payments through loan modification. So what is HAMP modification? It is a program that makes changes to, or modifies, the original mortgage loan. There are many different kinds of HAMP plans for people from all walks of life, and because of HAMP, many of them have been able to keep their homes, rather than be foreclosed on. There are certain eligibility requirements for the program, including having taken out the original mortgage on or before Jan. 1, 2009; being able to offer proof of financial hardship; and producing documentation of income indicating a new, reduced payment will be affordable. In its first incarnation, the homeowner had to live on the premises for which he was requesting assistance; that is no longer the case. The property owner can request help for a property he rents or a second home now. So long as the property has not been condemned and the owner has not been convicted of a felony in the past 10 years, he may be able to qualify for HAMP assistance.

What is HAMP loan modification as it relates to second mortgages, those people who have received this kind of help before but defaulted on the modified loan, and folks whose debt-to-income ratio is lower than 31%? A second mortgage can be modified if a homeowner meets the qualification guidelines. In cases where a homeowner has already had a permanent modification through HAMP but defaulted on the new payments, it is possible for him to receive help again. Even if a person has had HAMP assistance and defaulted during the three-month trial period, they may still be able to receive a modification. Prior to the changes made in January 2012, a person whose debt-to-income ratio was lower than 31% could not receive any aid through HAMP. That has since changed, and homeowners who are having a hard time making their mortgage payments despite having a lower d-t-r can receive assistance.

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