HAMP 2 Mortgage Modification News
by Victoria from Palm Beach County, FL
Ask Kate about HAMP 2 Mortgage Modification News: Hi Kate, Thanks for your wonderful website. Since my mortgage loan is not a Freddie Mac or Fannie Mae, what non-GSE options are available for me? I first applied for the HAMP mortgage modification 2 years ago. But my lender created an income error in my application processing.
May 2015 National Mortgage News - New HAMP Expiration Date Important! The HAMP mortgage loan modification program through Making Home Affordable has been extended through December 31, 2016.
2013 National Mortgage News - Streamline HAMP Modification Freddie Mac (effective May 2013) and Fannie Mae (effective July 2013) no longer ask for paperwork from struggling homeowners applying to modify their mortgages.
Existing mortgages must be 1 year old, at least 90 days late but no more than 720 days delinquent. Proving a hardship is no longer a requirement.
Take advantage of the sudden about-face in HAMP guidelines to get an affordable house payment and avoid foreclosure. Do it before the mortgage giants change their minds and start asking for reams of paperwork again! Victoria continues...
As a result of the lender's refusal to correct the error, I can't find any programs that seem to apply to my situation.
My lender began refusing payments as of May 2011.
Until that time I was current and making all Trial Period Plan (TPP) house payments.
Now it seems this foreclosure situation has been forced upon me because they have demanded the difference between the original payment amount and my TPP.
But I do not have the lump sum of $15,000 they demand. I have appealed to the Attorney Generals, White House, politicians, and the Treasury Department.
Nothing has helped. What can I do?
Kate Answers: HAMP 2 Mortgage Modification
These days I feel both relief and distress.
I'm reassured knowing of homeowners who are refinancing, avoiding foreclosure, and securing affordable mortgage payments.
But I'm distressed by loan modification experiences like yours. Clearly, the system has failed you. But let's see if I can point you in a direction that hopefully will end in successfully saving your home.
So let's take a look at what's new and what's improved on the mortgage loan modification front.
This is about HAMP Phase 2 Loan Modification not HARP 2.0 Refinance
! Do not get the two confused as they are two totally separate loan products with different requirements and outcome.
HAMP Phase 2 Loan Modification Brings Choices to Homeowners
Until (if) we see the Proposed Obama Streamline Refinance
come to fruition, modifying a mortgage is an option for homeowners with or without Fannie Mae, Freddie Mac, FHA, VA, or USDA government sponsored entity (GSE) financing.
This financing can be done through Making Home Affordable Modification Program (HAMP) or directly through a homeowner's lender usually via their loan servicer.
Keeping this in mind, it's interesting to note that in 2011, loan modifications done directly through loan servicers outnumbered those completed through HAMP by two-to-one
Loan Modification Through Your Lender
Before President Obama initiated the Making Home Affordable Program in 2009, distressed homeowners were on their own in convincing a lender to turn an exploding mortgage (a Donald Trump term) into an affordable home loan.
Thousands of companies sprung up overnight charging mega bucks to negotiate modifications on behalf of homeowners. Lack luster results followed.
Under this backdrop, I wrote an article asking not could
but should you try to handle your own mortgage loan modification
and avoid the massive fees charged by negotiation companies.
But with twice as many homeowners going straight to their own lender to negotiate a mortgage modification, Making Home Affordable wants a bigger piece of the pie!
So in an effort to help more homeowners afford their payments and strengthen local communities, HAMP Phase 2 was announced March 9, 2012. Bigger. Better. Expanded to assist more homeowners affected by the housing crisis.But eligibility first. You may be eligible to be considered for HAMP if: What can the expanded HAMP do for the fragile housing market that the original program couldn't?
- Lending personnel are trained so that homeowners across the nation are approved or denied based on the same criteria. (Sounds like a good idea!)
- There is also triple the compensation to investors to increase principal reductions of mortgage balances, including the Fannie Mae or Freddie Mac loans. (GSE loans were not eligible for principal reductions before HAMP Phase 2.)
- It has more flexible debt-to-income guidelines beyond the 31 percent debt-to-income requirement. So borrowers struggling to make ends meet will get a more in-depth consideration.
- Homeowners who currently have or plan to have tenants may still be eligible.
- This is promising solution available to homeowners who didn't complete their original HAMP trial period.
- Homeowners who fell out of permanent loan modifications because of missed payments may also be eligible.
What's your next step? Contact your lender to see if they participate in HAMP. If not, see if they provide modification alternatives of their own.
Because you will be modifying, not refinancing your mortgage, it is always wise to ask of any adverse affect on your credit scores and history.
If you qualify for HAMP and have a 2nd mortgage, you may also qualify for the Second Lien Modification Program, also known as 2MP.
There are also loan modification programs for homeowners with FHA, VA, and USDA financing.
How to Find Mortgage News and Announcements Here
Check in often with my Best Mortgage Rate Blog
for mortgage news and announcements.
For instance, I watch for updates on the Proposed Obama Streamline Refinance
which offers hope to homeowners with non Fannie Mae and Freddie Mac mortgages.
Then I report the news at my mortgage blog. So this is an easy way to scan Get-Your-Best-Mortgage-Rate for what's new!
Good luck and best wishes to you,
Ask Kate about Your Mortgage
Anyone can ask Kate a question
or add a comment. (To comment, look for the link at the bottom of this page.)
Have You Seen Recent Ask Kate Answers
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I'm following your magical steps in hopes of getting my financial situation under control. Thanks for your help!
Go here if you also want to get out of debt and pay off your mortgage early without sacrificing your lifestyle!
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