Changes to HAMP announced for unemployed

Just last week the government released the details of a modification to the HAMP program so that those that are unemployed can get approval for a loan forbearance for 3-6 months.  This is great, great news for someone who has just been layed off and is on unemployment.  In the past, we’ve been more challenged to help someone who just got laid off, because they didn’t have the income needed to make a sizable house payment.

The beauty of this program is that the payment would be no more than 31% of your current income.  So, if your unemployment benefits totaled $1500 per month, your house payment would be lowered to approximately $450.  This would last for 3 months and could be extended to 6 months, and at the end of it, provided you’re employed again, you could still qualify for a loan modification.

The program is still optional for lenders, but most of the major lenders have signed on to participate.

HOWEVER….  one of the eligibility criteria is that you apply within 90 days of delinquency.  THIS IS IMPORTANT!

From the pool of people who ask me to write their hardship letters, I see way too many people wait to apply for assistance from their lenders after they’ve missed 4 or more house payments.  This could disqualify you from this big break that you could get, so don’t delay!