The Home Affordable Modification Program (HAMP) is part of the government’s Making Home Affordable initiative. HAMP modifies existing first-lien mortgages to lower the monthly mortgage payment. Previously, HAMP was only available for primary residences, but the rules changed on June 1, 2012, and now HAMP modifications are available for certain investment properties.
(To learn about other government programs available to help struggling homeowners, visit our Government Foreclosure Prevention Programs topic area.)
An investment property is a property that is:
Rental property is a type of investment property.
HAMP assists borrowers by modifying their first-lien mortgages so that the monthly payments are lower and more affordable. As of June 1, 2012, HAMP is available to borrowers who are seeking a modification on property that is currently rented or that the homeowner intends to rent.
You may qualify for a HAMP modification if:
To apply for HAMP, contact your mortgage servicer. Even if your mortgage servicer does not participate in the program (or if you have been denied HAMP), your loan servicer may offer its own alternative to foreclosure.
If your first mortgage was permanently modified under HAMP and you also have a second mortgage, you may qualify for the Second Lien Modification Program (2MP) under the Making Home Affordable program. The 2MP program provides modifications or principal reductions on second mortgages.
If you meet all of the following criteria, you may be eligible for 2MP:
If you feel you may qualify for 2MP, contact the servicer of your second mortgage to discuss this option.
The government requires that servicers of loans owned or guaranteed by Fannie Mae or Freddie Mac participate in the Making Home Affordable program. Go to www.fanniemae.com/loanlookup and www.freddiemac.com/mymortgage to find out if Fannie Mae or Freddie Mac is the owner of your loan.
For servicers of non-Fannie Mae or Freddie Mac loans, participation is voluntary. A current list of participating servicers is available at www.makinghomeaffordable.gov/get-assistance/contact-mortgage/Pages/default.aspx or you can contact your mortgage servicer and askif it participates in the program.
HAMP is scheduled to end on December 31, 2016. If you have additional questions about HAMP, or any other program under the Making Home Affordable initiative, you can call 1-888-995-HOPE (4673) or go to www.makinghomeaffordable.gov for more information.