HAMP is expanding to military members who are permanently displaced by a job-related move. They still will be considered owner-occupants when applying for the Home Affordable Modification Program (HAMP). This program will start on June 1st 2012.
The announcement was made by Treasury assistant secretary Tim Massad and Holly Petraeus, assistant director for Servicemember Affairs at the Consumer Financial Protection Bureau(CFPB).
The new criteria states that a borrower may qualify if he or she:
Is displaced due to an out-of-area job transfer such as PCS orders and was occupying the home as a principal residence immediately prior to the displacement;
Intends to return to the home at some point in the future; and
Does not own any other single-family real estate.
Military and other families who do own other residential properties may still qualify for a HAMP modification under expanded opportunities available for rental properties announced by Treasury in January. They also may qualify for a short sale through Treasury’s Home Affordable Foreclosure Alternatives Program (HAFA).
“The issue of Permanent Change of Station creates a unique set of circumstances for military homeowners who are required to move to a new location. Recognizing many of these homeowners as owner-occupants allows them to qualify for a HAMP modification and creates a mortgage option that was not available before under the current rules,” said Faith Schwartz, executive director of HOPENOW.