Home Affordability Modification Program: HAMP

It's not just a New Jersey problem. Borrowers throughout the United States are struggling to pay mortgages they cannot afford. Some were given subprime mortgages and have experienced a significant increase in their mortgage payments. Others have become victims of the economy and have lost their jobs or their income has gone down. Still others have suffered additional hardships — like medical emergencies or divorces — that left them unable to pay.

To make matters worse, many New Jersey homeowners are "underwater" on their mortgages and owe more than what the home is worth. If things don't change, they may end up facing foreclosure.

That's why President Obama created HAMP — the Home Affordability Modification Program — that allows troubled borrowers relief from the big banks on monthly mortgage payments. Banks who agree to participate in HAMP also agree to do other things to reduce borrowers' monthly payments to 31% of the gross monthly income. These range from lowering interests to extending the life of the loan.

The deal sounds like a good plan, but it hasn't yet been as effective as possible for homeowners. Banks do not have to reduce how much homeowners owe them — only their monthly mortgage payments.

Contact A Morristown Federal HAMP Program Attorney

Call Ast & Schmidt, P.C., at 973-984-8024 to schedule a free, initial consultation with an experienced bankruptcy lawyer. You may also simply complete our online contact form.

We offer flexible hours — Monday through Friday — with all meetings by appointment. Evening meetings are available. Our office is conveniently located across the street from the Morris County Mall, and we have off-street parking.