In order to apply for this program, your servicer must be a participant in the government’s Home Affordable Modification Program (HAMP). You can check the HAMP website to find out if your servicer is a participant. If your servicer is on the list, then you can phone, e-mail or write your servicer. Even before contacting your servicer you may want to seek help from a HUD Foreclosure Avoidance Counselor, who can help you through the process.
Successful applicants will be eligible for at least three months of mortgage payment forbearance and that could be extended by your servicer. Extensions are considered on a case-by-case basis. As a participant in the program, your monthly payment must be reduced to no more than 31 percent of your gross monthly household income.
If you get a new job during the forbearance period, you must notify your servicer immediately. If you don’t get a job, your lender will review your case for a possible extension. About 30 days before the end of your forbearance period, you will receive a package to request a HAMP modification. Once you get a job, you will be eligible to apply for a HAMP modification.
If your servicer determines that you are not eligible for HAUP, he then will consider whether you are eligible for another modification program. If you don’t meet eligibility for any of the modification programs, you may be referred to the Home Affordable Foreclosure Alternatives Program (HAFA).
