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Payment Reduction Plan (PRP)

How does this program help me?

The first thing you need to know is that you are only eligible for this program if you are determined to be ineligible for the Home Affordable Modification Program (H.A.M.P.).

If you are having a tough spell due to a job loss, illness, divorce or other temporary setback this program can help you get back on your feet. Under this program you can get the principle and interest portion of your payment lowered by as much as 30% for up to six months. During this time your lender will work closely with you to see if a more permanent solution can be created.

Who should I contact?

Only your servicer can do this program. Your servicer is the company you mail your monthly mortgage payments to. Get out your monthly mortgage statement and call the customer service number on it. Ask to apply for the Payment Reduction Plan. It is often their "loss mitigation" department that handles these types of programs so they might transfer your call there. Just so you are aware, it is the law that they participate in the program!

What should I expect?

Be prepared to be persistent. Since this program can only be done by your servicer you are relying on the knowledge of the person that answers the phone. If they don't know what the program is ask to speak to a supervisor.

Once you have the right person be prepared to explain the situation and how it will change for the better. You will probably be asked to provide some personal financial documents and an explanation, or "hardship" letter. Be sure to check out our resources section for a list of financial documents to get together.