The Obama Administration devised a foreclosure prevention program, Home Affordable Modification Program (HAMP) that enabled troubled homeowners to reduce their mortgage payments to 31% of their pre-tax income.  After following the guidelines during the homeowner’s trial modification of their mortgage, homeowners are then re-evaluated to qualify for a permanent modification.

To date, 228,000 troubled borrowers have received a permanent loan modification through the HAMP program, 781,000 troubled borrowers have been placed in the trial modification part of the program. The original goal of HAMP was to aid 4 million homeowners, the program has fallen short of its mark however the amount of people who have benefited from HAMP is still increasing.

One issue inhibiting the program is the passing of paperwork between the lenders and the borrowers and the inability to keep track of it.  Lenders are complaining that borrowers are not turning in the required paperwork while borrowers are claiming the lenders are losing paperwork. Resolution of this problem will begin in June, borrowers must have all required documentation needed and given to the lender before a trial modification will be considered.

To see if you qualify for a loan modification under the HAMP qualifications click here.