On March 4, 2009, the Treasury Department issued new guidelines and created the Making Homes Affordable Initiative, part of which includes a program to modify loans, called the Home Affordable Modification Program. If your lender can service your loan under the Home Affordable Modification Program, you may be able to reduce your monthly payment to 31% of your gross monthly income for five years. Additionally, if you make all payments on time during each of those five years, you may receive $1000 principal reduction per year.
Approximately four million qualifying homeowners will be able to take advantage of this plan. Are you one of them? To qualify, you must meet the following criteria:
1. The home must be your primary residence.
2. The principal balance on your home must not be greater than $729,500.
3. You must have obtained the loan prior to January 1, 2009.
4. You can only modify your loan once, and it must be done prior to January 1, 2013.
5. You must complete and submit certain documentation.
Lenders have until the end of this year to sign up with the Treasury Department to service loans under this program. If they do, they will receive a number of benefits, including financial assistance from the government to help defray the cost of the modification. If you believe you qualify for a mortgage modification, you should find out if your lender is participating in the Home Affordable Modification Program.
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4 comments:
I was denied a MHA Hamp reason given "hardship not permanent nature" bank's excuse my wife (coborrower) is unemployed.
She has been out of work for more than 12 months and continues to seek work. Our hardship has put a huge strain on our combine household income.
Also, Bank stated that I make less now than in 2007 which is false I have W-2's to prove otherwise.
Does my lender have the right to deny me a HAMP based the facts above. I don't believe my lender is following the US Treasury guidelines and is making up their own rules.
First of all, it's my understanding that for loans that are not insured by Fannie Mae, the Making Homes Affordable Initiative is a voluntary program for lenders. You may not qualify specifically under the Making Homes Affordable program, or your lender may have decided to participate but may not have developed internal guidelines yet. Second, without a thorough examination of your file, I cannot advise you as to whether you qualify for a loan modification. Good luck!
My loan is backed by Fannie Mae and my lender is Chase Bank.
Again, without a thorough examination of your file, I cannot give you any advice!
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