Home Price Decline Protection Incentives
The Treasury Department announced the eligibility and requirements for the Home Affordable Modification Program (HAMP). Under HAMP, servicers apply a consistent loan modification process to provide eligible borrowers with sustainable monthly payments for their mortgage loans.
This Supplemental Directive introduces the Home Price Decline Protection (HPDP) incentives. This initiative is designed to encourage modification of loans in markets hardest hit by falling home prices.
The HPDP initiative provides owners with additional incentives for HAMP modifications of loans on properties located in areas like Miami where home prices have declined and where home owners are concerned that price declines may persist.
HPDP incentive payments will be linked to the rate of recent home price decline in their respective housing market, as well as the unpaid principal balance.
For more information see a loan modification expert in your area.
