Definition
Home Affordable Modification Program providing loan modifications and payment reductions to prevent foreclosures.
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HAMP offered loan modifications reducing monthly payments through interest rate reduction, term extension, or principal forbearance. Servicers were incentivized to offer modifications. Eligible homeowners could apply for assistance. Modifications prevented foreclosure and kept homeowners in homes. Some servicer implementation issues occurred despite program structure. Millions benefited from modifications. Program largely concluded but concepts continue in servicer loss mitigation. Historical importance in foreclosure crisis response.
Pro Tip
Contact servicer about loan modification options similar to HAMP for payment assistance.
Example
HAMP reduced a homeowner's mortgage payment $200/month through modification, preventing foreclosure.