When Home Affordable Modification Program Says No
by George from 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.
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
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 nearby local community event hosted by Making Home Affordable and HOPE NOW.
Watch for future dates and locations at this page on Get Your Best Mortgage Rate
and on my mortgage blog
You can also call 1-888-995-HOPE (4673) for required mortgage forms, help putting together your 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 overly emphasize the importance.
Paperwork for Making Home Affordable Local Community Events
To get the most benefit from your local MHA event, bring the following documents:
- Monthly mortgage statement or coupon book
- If you have additional home loans, include their monthly mortgage statements or coupon books
- Two most recent pay stubs for all borrowers
- Last two years of tax returns
- If self-employed, the most recent quarterly or year-to-date Profit and Loss Statement
- Receipt of income from alimony, child support, social security, etc. Decrees and award letters also.
- Two most recent bank statements, all pages
- A utility bill showing homeowner name and property address
- Unemployment insurance letter, if applicable
HUD counselors will assist you with putting together your documents. Call a HUD counselor 24/7 at 888-995-4673. Their help is free.
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.
Good luck and best wishes,
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