HAMP Borrowers Rewards

HAMP Borrowers Rewards

HAMP Borrowers Rewards offers borrowers more money.

As you may know, the Home Affordable Modification Program, or HAMP, provides help for homeowners who find themselves struggling to get their mortgage payments in on time.  It is an extremely resourceful program as it saves those from falling into deep debt.  Additionally, HAMP borrowers can also be rewarded many benefits so they can feel secure about their mortgage.

Prior to recent changes in HAMP, homeowners were eligible to earn $5,000 if they handed in their mortgage payments on time for the first five years of their loan.  The reason why this was beneficial was because the money earned ended up going into the homeowner’s principal balance.  Now, the Treasury Department and Department of Housing and Urban Development have announced the HAMP Tier 2 alternative program.  This Tier 2 program allows those homeowners who did not qualify for the HAMP modification the ability to receive $5,000 as a pay-for-performance incentive during their sixth year.

This now means that borrowers can receive up to $10,000 in reductions, which will give them a chance to lower their monthly payments entirely.  The Treasury noted that one million homeowners who were HAMP borrowers were eligible for the $5,000 incentive, which will be a great influx in improving the lives of homeowners as a whole.  In addition, the deed-in-lieu short sale programs have been enhanced by the Treasury.  Now, homeowners will be offered $10,000 in relocation assistance instead of the $7,000 that was offered previously.

It is clear that there are drastic positive changes coming from the housing market.  The result of these changes will most likely have an immediate impact for homeowners, nonetheless these implications are sure to change their lives.  To read more about the details of HAMP borrowers rewards, check out McFarlin LLP’s article here.  And remember, talking to an attorney is always an option when it comes to managing and maintaining homeowner litigations.