The economy has forced millions of people into unstable financial circumstances. The foreclosure rate has exploded, making a lot of people at risk of being homeless. To help those families who are not able to pay their home mortgages any longer, Obama has come up with the Home Affordable Modification Program. In accordance with the hamp program, lenders will lower the instalments of eligible homeowners to an amount that’ll be able to manage long-term.

The Administration has created a summary of HAMP Program Guidelines that clearly , the modification process, and payment terms. The homeowners who meet each one of the following criteria will be eligible for this aid program: one, they have to be in danger of or already defaulting on their mortgage; two, the home should be their primary residence; three, the date on their mortgage loan must be January 1, 2009 or earlier; four, they have to owe no more than $729,750 on the principal balance.

For homeowners who are eligible, their mortgage repayments will be reduced to 31% of their gross monthly income. This method can include decreasing the interest rate, extending the life of the loan, and deferring a portion of the loan without charging interest. These HAMP guidelines have been in place to protect both parties involved- the homeowners from being ripped off and the banks from being scammed by individuals who actually don’t need this program’s aid. HAMP will enable the government to see us through these hard financial times and keep families right where they belong – at home.