The federal Making Home Affordable Program includes the Home Affordable Foreclosure Alternatives Program, or HAFA, and the Home Affordable Modification Program, or HAMP. The goal of these programs is to help to stabilize the housing market, to improve the economy and to help homeowners to avoid foreclosure.
HAFA lets borrowers use deeds in lieu of foreclosure or short sales to get out from under their mortgages. HAMP helps homeowners to avoid foreclosure through the modification of first mortgages secured by the homes.
Home Affordable Modification Program
Through loan modifications, HAMP helps by lowering the monthly payments so that they are more affordable for the borrowers.
Participating loan servicers for HAMP
Servicers of mortgages that are guaranteed or owned by Freddie Mac or Fannie Mae must participate in the program. Servicers of other mortgages that are not guaranteed or owned by Freddie Mac or Fannie Mae may participate on a voluntary basis, but they are not required to do so.
Eligibility for HAMP
Homeowners may be eligible for the program if they meet all of the following requirements: