More than 3 million homeowners in the United States are still struggling to pay their mortgages on time, due to the lingering effects of the bad economy. If you find yourself behind with your mortgage payments, the worst thing you can do is put your head in the sand, like an ostrich, and hope that the problem goes away. So what solutions are available? One solution is to qualify for HAMP, a program created by the Federal government to assist you in re-structuring your current mortgage.

You need to be aware of the benefits of HAMP, if you qualify. Your loan can be modified so that you don't lose your dream home to foreclosure, or suffer the side effects a foreclosure has on your credit rating. Since the HAMP is not advertised in the newspaper, like a foreclosure, you are also able to retain your privacy and dignity during this tough time.

Here are some of the basics you need to know before you even attempt to qualify for HAMP. You have to be currently behind in your mortgage payments or be on the verge of defaulting on your mortgage. This program is only available for a homeowners' primary residence, not a vacation home or second home. The loan had to be taken out on your property before January 1, 2009, and you have to owe less than $729,750 on the mortgage.

If you qualify for HAMP, then the lender will adjust the terms of your original mortgage so that your mortgage payment does not exceed 31% of your gross monthly income, before taxes. One or more of your mortgage terms can be changed to accomplish this adjustment. For example, your loan can be extended to a 40 year term, instead of the current 15 or 30 year traditional loan periods. The interest rate on your loan can also be reduced to as low as 2%. The lender can also defer or postpone requiring you to pay money you owe on the mortgage principal. The lender can also elect to waive the interest owed on the amount deferred. Finally, the lender can elect to completely forgive a portion of the principal owed on your mortgage.

If you qualify for the HAMP, and agree to the new terms, you will lessen the likelihood that you will lose your home, and your credit rating will not take as big of a ‘hit' as it would if you lost your home through a foreclosure proceeding