When Home Affordable Modification Program Says No

by George (Florida)

Ask Kate when Home Affordable Modification Program says NO: Hello Kate - With my upside down mortgage, we are robbing Peter to pay Paul. I am 50% disabled and my wife was diagnosed with ovarian stage 4 cancer. I don't qualify for HAMP (Home Affordable Modification Program) because I'm told I make too much money.

George continues... I know you must hear this everyday, but if anybody can give advise I would appreciate this. I have a question about my upside down mortgage. I am 50% disabled with a mortgage payment of $1,300 PITI. Originally my wife and I opted to do the VA loan. The home was $100,000 with my credit rating well over 700.

I was told that I could refinance my home because my town home was appraised at 195,000. I refinanced because my wife was diagnosed with ovarian stage 4 cancer. With being behind in credit cards, and hospital medical co-pays and prescriptions it took a huge toll on our finances.

My credit rating went down hill fast. I am currently 3 payments behind my mortgage, and just keeping my head above water for being in foreclosure.

The home is now appraised at 50,000. I don't qualify for HAMP because I make $40,000 a year, and my wife gets $597 a month. I also get $847 for my disability. My checks at work come to $1900 a month net. With my pension, I get around $2700 net a month. I also get a commission check maybe every other month of $1200.

My bills are as follows:

• Mortgage PITI = 1300.00, 200.00 HOA fee


• Electric, phone, and water = 425.00 a month


• My truck payment = 216.00 and my wife is 340.00. I owe around 4,000.00 and she owes around 5,000.00. We are almost on the verge to let her car go and get repossessed.


• Gas and car insurance = 400.00


• Food = 300.00


• Total amount = 3181.00

As you can see my wife and I are a sinking ship waiting to happen. We are robbing Peter to pay Paul.

Anyway my wife was told 5 years ago she had 6 months to live. Well she is still alive and still doing chemo, but still with me. I've been with her for 30 years now, and married 25. If you can tell me if there is anything out there to help us, that would be great and appreciated. Thanks, George and Dorothy C.

Kate Answers: When Home Affordable Modification Program (HAMP) says NO

Dear George,

My heart goes out to you. I understand first-hand how a significant injury or illness can put a strain on life.

In lieu of mortgage foreclosure or car repossession, there are other options such as selling a car or offering your home to buyers as a short sale.

But before you consider those, I'm wondering who determined that you make too much money to qualify for Home Affordable Modification Program (HAMP). Keep in mind, just like the FHA home mortgage program, there are also myths surrounding the Making Home Affordable (MHA) program.

I'd like you to make sure you have all of the facts and are getting the maximum help possible when it comes to HAMP!
Although doing business via the internet, email, phone, and text is popular, I still believe applying for a mortgage in person, whenever possible, brings the best results. What compares to a face-to-face conversation for conveying emotion? Don't let anyone tell you it doesn't make a difference!

Making Home Affordable and HOPE NOW Community Events

With this in mind, I would recommend attending a local community event hosted by Making Home Affordable and HOPE NOW. The next three scheduled are Tuesday, January 24, 2012 in Charlotte, North Carolina, Wednesday, February 22, 2012 in Miami, Florida, and Friday, February 24, 2012 in Tampa, Florida. Watch for future dates and locations at this page on Get Your Best Mortgage Rate.

You can also call 1-888-995-HOPE (4673) for required mortgage forms, a list of financial documents, and to determine which local community event covers your city. By the way, bringing all of the financial paperwork is not just a suggestion - it's a necessity. I can't emphasize the importance enough.

I am hearing of the good results from homeowners who attend Making Home Affordable and HOPE NOW local community events. Homeowners have the opportunity to meet in person with housing experts, on an individual basis, to learn how to avoid and stop mortgage foreclosure on their homes.

Two more things about the MHA local community events. For maximum benefit, various Making Home Affordable programs can be combined for qualified homeowners at the local community events. Plus HUD-approved housing counselors are on location to help homeowners understand their options and walk them through the process.

So don't think this is the same as visiting your lender to discuss HAMP. These dedicated community events are worth their weight in gold.

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Ask Kate Announcements to HARP II Guidelines - Home Affordable Refinance Program Changes

• Sweeping Changes to Home Affordable Refinance Program Announcement (HARP II) Part 1
• HARP Mortgage Closing Costs Update Part 2
• HARP II Eligibility Requirements Announcement Part 3

Have You Seen the Most Recent Ask Kate Answers

• How to Refinance a Good Mortgage Gone Bad
• HARP 1st 2nd Mortgage Refinancing Problems
• How to Understand Making Home Affordable Refinance Offer

Best wishes,

Back to more Ask Kate Questions and Answers at Loan Modification, Making Home Affordable HARP, HAMP, Short Sale, and Strategic Default from When Home Affordable Modification Program Says No

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