Significance

• The Home Affordable Modification Program is designed to help 3 million to 4 million homeowners avoid foreclosure by modifying their first mortgage to a level that is affordable and sustainable, says Making Home Affordable. The Second Lien Modification Program is HAMP's complementary program for second loans designed to help up to 1.5 million borrowers.
  
  

Function

• The programs are designed to help you if you are delinquent on the mortgage or face imminent default; your occupy the property; you obtained your loan on or before Jan. 1, 2009; and your loan balance is less than $729,750 for a one-unit property, says Making Home Affordable. The 2MP must be used in conjunction with HAMP first loan modification.
  
  

Prevention/Solution

• If you face foreclosure and both lenders refuse to modify your loan, contact a counseling agency approved by the U.S. Department of Housing and Urban Development to determine other options, such as forbearance, short sale or deed-in-lieu of foreclosure. Counselors can work with your lender directly and free of charge, says HUD. Call 800-569-4287.