The federal government’s Making Home Affordable program was introduced in February 2009. The goal of the program is to help stabilize the housing market and help homeowners who are struggling. The Making Home Affordable program consists of two parts, Home Affordable Refinance Program (HARP) and Home Affordable Modification Program (HAMP).

The Home Affordable Modification Program was designed to help homeowners who are struggling to keep their mortgage current or who may already be behind with their mortgage. The goal of the program is that through providing mortgage servicers with financial incentives to modify existing first lien mortgages, homeowners may avoid foreclosure through a loan modification. In order to be eligible for the program, the person must be a homeowner of a one-to-four unit home. In addition, the mortgage must have been originated before January 1, 2009. Another eligibility requirement is that the current monthly mortgage payment must be greater than 31% of the borrower’s monthly gross income. To determine if your servicer is participating in the Home Affordable Modification Program you can go to the following website: www.makinghomeaffordable.gov. The goal of the HAMP is to help lower the monthly mortgage payment to a level below 31% of your gross income. The servicer may consider modifying the following terms of your loan to get you below the 31% mark: