The Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP) are set to expire at the end of this year, unless Congress acts to extend them. The programs, which were implemented during the height of the foreclosure crisis, have helped homeowners keep their homes, often on better terms than the original loan. Borrowers don’t have to be in default to take advantage of these programs. For borrowers who are in default (or in foreclosure), a HAMP modification can slow down the foreclosure process and may result in a more affordable mortgage payment.
Many of our clients have saved their home via loan modification. Homeowners who want to take advantage of these programs should act now. Although there are still five-and-a-half months left in the year, don’t delay. In my experience, banks will request multiple document submissions before making a decision. Starting now increases the chance that you’ll be able to get something done before the program expires.