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If you, like many people today, are faced with a mortgage which is delinquent or about to become delinquent, you may qualify for help from Uncle Sam. The Home Affordable Modification Program (HAMP) was enacted in February 2009 to help keep families in their homes. All lenders who have loans backed by Fannie Mae or Freddie Mac automatically participate. HAMP is designed to help avoid foreclosure and the associated expense and distress, but in the case of inevitable default, it streamlines the process for short sales as an alternative. HAMP is far too complicated to completely cover in this article, so you should contact your lender for assistance and request a loan modification. Your real estate professional may be able to help you get started, if they have been trained and understand the Making Home Affordable (MHA) process. Only loans on primary residences are eligible. You will be asked to provide proof of financial hardship. There are limits on the amount covered by the program, but most homes will qualify. The loan must have originated on or before 1/1/09, and the payment must be equal to or greater than 31% of your gross monthly income. Participating loan servicers (there are over 2300) must offer you the opportunity to modify your existing loan. That is not to say that you will actually receive a modified loan, but the servicer must give you the opportunity to qualify. If that happens, you will receive a proposed reduction in your loan payment. If you do not qualify for a modification, or do not accept the proposed modification, the lender must then offer you the opportunity to attempt a short sale. The process for a short sale is significantly different than what we have been accustomed to, since the servicer sets the price and term of the listing, which ranges from 90 days to one year. They cannot conduct a foreclosure sale during the period of the short sale listing. Although the homeowner eventually loses the home, they are allowed to stay in the home a little longer, make arrangements to relocate, may encounter less damage to their credit score, and in some cases may receive a relocation allowance. Homeowners may not attempt a short sale under MHA without the assistance of a real estate professional, which is also good advice for any type of short sale.