HAMP Program: Let me get this straight...

I have noticed here lately that when I am speaking to potential clients for loan modifications, that they have been having difficulties with their eligibility for the HAMP Program. In these particular situations, I don’t know if the client is misunderstanding or in their lender is just being facetious. They are being told that do not qualify to receive a mortgage rate reduction because they are paying more than 31% of their monthly income towards their mortgage. Or that they don't qualify because they are behind If your lender is telling you this, you need to straighten them out.

 According to http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/hamp.aspx, you are eligible for the HAMP Program if you are paying more that 31%. This being from the actual site, I tend to believe that a little more than someone representing the lender that just happened to get a job in customer service.

There are several different facets that Making Homes Affordable has in place. There is not only the reduced interest, but there is Principal Reduction Alternative.

 

 Your mortgage cannot  be owned or guaranteed by Fannie Mae or Freddie Mac.You must owe more than your home is worth.You  have to occupy the house as your primary residence. If you obtained your mortgage on or before January 1, 2009, and your mortgage payment is more than 31 % of your gross monthly income. You must owe up to $729,750 on your 1st mortgage, and have a financial hardship that has lead you to be either delinquent or in danger of falling behind.You have to have sufficient, documented income to support the modified payment, you must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.--- http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/pra.aspx



There is also Home Affordable Unemployment Program. You may be eligible if:

You are unemployed and eligible for unemployment benefits.You have to occupy the house as your primary residence.You have not previously received a HAMP  modification, and you obtained your mortgage on or before January 1, 2009.You have to owe up to $729,750 on your home.-- http://www.makinghomeaffordable.gov/programs/unemployed-

Keep in mind however that you may be required to make a partial payment not exceeding 31%.  I don’t know if those partial payments will actually be going to the mortgage or not, you may want to check your statements to see if it reflects that. Find out if it is going into an escrow account; just make sure that you know where your money is going. This program is NOT available if your mortgage is held by Fannie Mae or Freddie Mac, so if yours Is, you will need to contact them about the forbearance programs they have available.

Furthermore, if you are behind, that means that you have hit a hardship and were unable or are unable to afford your payments. That is the reason why you need a modification. No need to go too deep on that one. You should just talk to them like they are idiots if they tell you that you don't qualify because you are behind.

At the end of the day you just have to know what and who you are dealing with. You CAN do this by yourself but your lender may be telling you that it is unable to be done. If you are having problems, you may need to get in contact with someone that has the know how to deal with the lender. If you fall under these criteria listed above, you shouldn’t have a problem obtain a HAMP modification. Remember, modifications are about numbers and ratios. If you can prove hardship you are eligible.

Let me know if you have any questions or concerns or if you just want to talk about it.