Various choices are available for loan modifications and determining the best option for you can be confusing. You may have heard of HAMP, a federal loan modification program. HEMAP is the loan modification program that the Pennsylvania state government offers homeowners. Your mortgage modification specialist is probably the best judge of which program would benefit you most. But a general understanding of these loan modification programs is a good place to start and can prepare you for discussing your options.
HAMP stands for Home Affordable Modification Program and as of June 2012, the program expanded its criteria to include more homeowners than previously. For those whose home is a primary residence and are not unemployed, you may have already known about HAMP’s benefit of lowering mortgage payments. However now, HAMP is also available for homeowners whose properties are not primary residences but are rental properties. Homeowners with debt-to-income ratios of 31 percent or lower who were not eligible before may also qualify for HAMP. Homeowners who defaulted on previous HAMP plans may currently qualify as well.
HEMAP stands for Homeowners' Emergency Mortgage Assistance Program and is a Pennsylvania homeowners’ modification program. One major difference between HEMAP and HAMP is that to qualify for HEMAP:
Your home in default must also be your primary residence
You must occupy the residence
HEMAP also has other specific eligibility restrictions, such as your house must be a single-family house with no more than two living units.
To determine if you qualify for either program, let a skilled mortgage modification specialist do the calculations and advise which option can best help you save your home. Harold Shepley & Associates is an experienced debt relief firm in Pennsylvania that offers a financial analysis for free.