If a borrower cannot qualify for  the HARP program, the next best option is to go with the HAMP or Home Affordable Modificaiton Program.  This program has also been set up under the Making Home Afforable Program of the federal government to incourge homeowners and their lenders to consider modifying their loan to make it more affordable (reduce the payment to one the borrower can afford based on their income situation).

The requirements for qualifying for this program are the following:

1. The property must be the borrower's principal residence.

2. the loan on the property must be equal to or less than $729,750 for a single dwelling (more for

    2, 3 and 4 units)

3. The borrower must be having difficulty making the loan payments and must explain the reasons.

4. The loan must have been ordiginated prior to January 1, 2009

5. A property with either one or two loans on it an be eligible, but the payment on the first loan,

    including taxes and insurance, must not exceed 31% of the gross monthly income of the

    borrower.

6. The borrower is still allowed to have their property on the market as a short sale (see HAFA

    short sale program) while their application for HAMP is in process.

7. The borrower is emtered imto a trial period for sixty to ninety days to determine their ability to

    keep their new payment commitment. 

If it is determined that this program is not an option for the borrower, then the next step is the HAFA short sale program (click on HAFA for information on this program).