HAMP Tier 2 Help for Underwater Mortgages
by Amy in CA, Carol in CO, Debbie in CA, and Joan in OH
Ask Kate about HAMP Tier 2 help for underwater mortgages: To avoid further foreclosures among American households who are struggling with debt and underwater mortgages, Making Home Affordable now offers phase II of Home Affordable Modification Program, effective June 1, 2012.
Question 1: Can I qualify for a 2nd HAMP Loan By Amy from Highland, CA United States
Kate, Can I qualify for a 2nd HAMP loan modification? I was hurt at work, income went from $6300 a month to $61 overnight. I applied for a HAMP loan and qualified. My payment didn't really go down as they put my taxes and insurance on my monthly payment, so my payment went up $20 a month.
I received my disability retirement making my income $3500 a month. My mortgage is $1863, HOA fees $101, leaving not much to pay utilities, food, gas, doctor bills, medicines, etc. I have been working with Citi Mortgage since August trying to modify my mortgage. They keep telling me they cannot open some MAT Tool.
House now in foreclosure, no sale date yet, but I know it is coming. Didn't want a foreclosure, so put house up for short sale. I have two buyers, Citi said they have opened the MAT tool for the short sale, then turned around and told me they didn't get it open. Without it open, they cannot offer me any assistance at all, no modification, no short sale, no assistance moving.
Myself and my son are both disabled. We don't have the money to move and cannot move anything ourselves as we are both disabled. My husband, who is also disabled was living with us, contributing $1000, but because of disability reasons, I had to move my husband out of our home.
I owe $276,000, house worth around $185,000.
My loan is a Freddie Mac. I was told by friends I could not no way get a second loan through the HAMP program, as I already had one.
With this new HAMP Revision, do you think it is possible now?
Ask Kate answers: Can I qualify for a 2nd HAMP Loan?
1. Are not approved for HAMP Tier I
2. Defaulted on HAMP Tier I trial period payments
3. Lost good standing under HAMP Tier I
4. Experienced a change in circumstances after HAMP Tier I approval
...are eligible to be considered under HAMP Tier 2 extension and expansion guidelines.
Rental properties are eligible to be considered under HAMP Tier 2 also.
Principal reduction alternatives (PRA) under HAMP Tier 2 continue to include non-Freddie and non-Fannie (non-GSE) loans. But the PRA program also becomes available to homeowners with Freddie Mac and Fannie Mae loans. Yes!
In addition, the government offers triple incentives to loan servicers who participate in PRA. This should act as a carrot-on-the-stick to mortgage companies and help additional homeowners get more affordable mortgage payments.
Go to HAMP 2 Mortgage Modification News
for more details.
One more thing, tell your story by writing a descriptive letter regarding your hardship and include it with your HAMP application. Make the lender care!
Question 2: Barely Making Ends Meet By Carol from Denver
Hi Kate, My husband and I had some really severe hardships. Loss of a child. Loss of a huge amount of our income and got a HAMP modification about a year ago. Our home is way upside down still from current market values.
We have a regular loan at 2% and a 2nd mortgage line of credit (HELOC) that we needed to buy in the first place. These total over $330,000.00 but I doubt that we could get 230,000.00 for our home.
We had to declare bankruptcy over a year ago and live in fear every month about making the mortgage. Can anything help us?
My husband has medical problems and I don't make much either. We are 50 years old and have no savings or retirement.
I love our home and fear that if we give up, we won't be able to get another home because of the bankruptcy. Any advice you could offer would be so appreciated. Carol
Ask Kate answers: Barely Making Ends Meet
You family circumstances are overwhelming but adding the threat of losing your home must create a very heavy load.
I so wish I had more ideas to offer.
I'll admit, if HARP 2.0 refinancing fails or modifying your mortgage under HAMP is impossible, the left-over help is not the most palatable.
Nonetheless, I want you to know what Making Home Affordable offers. So go to HAFA Short Sale Foreclosure Alternatives, Deed-in-Lieu, and Deed-for-Lease
to understand your MHA options. There is even information on Strategic Default.
Remember, your home is not between the four walls. You and your husband have created a home and will take it with you if it comes down to one of the Making Home Affordable Foreclosure Alternatives.
I wish you the very best.
Question 3: Hamp Modification Requirements By Debbie from California
If you get a HAMP loan modification, do you have to live in the house?
Ask Kate answers: Hamp Modification Requirements
HAMP Tier 2 changes the guidelines to include rental properties. This is a huge help for homeowners who have moved out of their homes.
But unfortunately, at least 2 monthly house payments must be due or unpaid for rental properties to be considered under HAMP Tier 2.
The homeowner also cannot own more than 5 single family properties.
However, the property may be lived in by grandparents, parents, or dependent children, even with no rent collected. But to be considered a rental, it cannot be used as a vacation or 2nd home.
Go here for more details on HAMP Tier 2: Is HARP 2.0 or HAMP Loan Modification Best
Question 4: Defaulted on HAMP Mortgage Modification on VA Loan By Joan from Ohio
Kate, We were given a HAMP loan modification in June 2011 after making 3 trial payments. In October of 2011, we defaulted on the loan and have been trying to get a new modification.
But my husband passed in February 2012 (we are on social security) and this lowered our income. What do you think of my chances for modifying our loan a second time?
Ask Kate answers: Defaulted on HAMP Mortgage Modification on VA Loan
I'm sorry to hear of your loss.
There is additional evaluation under HAMP Tier 2 for homeowners struggling with debt beyond their underwater mortgages.
Flexible debt-to-income criteria will assist those with excess obligations other than monthly house payments. These guidelines are designed to serve a broader pool of borrowers.
So don't try to qualify yourself. Call your loan servicer and ask when they are evaluating loan modifications under the phase two guidelines.
Go here for more details on getting HAMP help face-to-face: When Home Affordable Modification Program Says No
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