The Treasury’s Home Affordable Modification Program, known as HAMP, will sunset on December 30, 2016. HAMP, put in place early in the Great Recession, provides two separate avenues for a homeowner with a qualified mortgage dated prior to January 1, 2009 that is in default or at imminent risk of default to seek a mortgage modification subject to program guidelines.
In order to take advantage of HAMP, a complete application package must be submitted to the participating mortgage servicer handling your mortgage by December 30, 2016.
Although there may be an opportunity to participate if something less than a complete package is submitted by year-end, you should get the papers in early and obtain confirmation that the package is complete as far before 12/30/16 as possible.
HAMP reviews are currently conducted under Bankruptcy Court supervision in the Southern District of New York (in the Poughkeepsie, White Plains and Manhattan divisions) under the Court’s Loss Mitigation program.
It is unclear what may be accomplished to assist the many remaining distressed homeowners who desire a mortgage modification after HAMP; mortgage servicers and consumer advocates have been in discussions about a possible new, voluntary program option. It is likely that in-house (investor) modifications will continue to be available to qualifying borrowers in some instances. Whether those programs will be of significant value to homeowners post-HAMP remains to be seen.