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Making Home Affordable Mortgage Refinance & Modification Program
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I’ve been hearing a lot about the government’s Making Home Affordable mortgage refinance program. Having looked at refinancing our mortgage a few months ago, but not pulling the trigger, I was interested to see if we could benefit from this program (we can’t, but that’s not a bad thing). It’s designed to help people get more favorable loan terms in scenarios where their home has lost value. A lot of lenders won’t refinance a loan if the value of your home is less than the loan amount, it’s simply a matter of math; this program looks to help alleviate some of that.
This program, introduced by the Obama Administration as part of the Financial Stability Plan, is estimated to help 7 to 9 million people. They estimate the Home Affordable Refinance Program will help 4 to 5 million and the Home Affordable Modification Program will help 3 – 4 million. What this means is that you should act quickly if you want your application processed quickly. The longer you wait to apply, the larger the backlog will grow, so let’s get to the program!
What is the Making Home Affordable Program?
There are two parts to the program. The first is Home Affordable Refinancing, which helps borrowers refinance a loan backed by Fannie Mae or Freddie Mac. It’s designed for people who are current on their mortgages and are unable to refinance because the value of their home has fallen by too much. The second part of the program is Home Affordable Modification, which assists in the modification of a loan, rather than a refinance. It’s designed for people who are “struggling to make their monthly mortgage payments.”
Making Home Affordable Eligibility
Home Affordable Refinancing: The first rule is that your loan has to be backed by Fannie Mae or Freddie Mac, which you can confirm on their websites (Fannie Mae Loan Lookup, Freddie Mac Loan Lookup). If you’re uncomfortable looking it up online, you can call Fannie Mae at 1-800-7FANNIE and Freddie Mac at 1-800-FREDDIE, 8AM to 8PM Eastern Standard Time).
Next, use the government’s website to determine your eligibility by answering this 4-question qualification form. I can save you some time, if you answer NO to any of the four questions, you’re not eligible for Home Affordable Refinance.
Home Affordable Modification: You aren’t required to have your loan backed by Fannie Mae or Freddie Mac for Home Affordable Modification, so you can skip that step and go straight to the 5-question qualification form. Again I can save you some time, if you answer NO to any of the five questions, you don’t qualify.
I Qualify, Now What?
Call the bank or mortgage lender that owns your mortgage and ask them for the Home Mortgage Refinance or Modification program application. You’ll need the following (I’d call for the application and then start collecting this information):
- Information about your mortgage, such as your monthly mortgage statement and
- Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
- Your most recent income tax return.
- Information about any second mortgage or home equity line of credit on the house.
- Account balances and minimum monthly payments due on all of your credit cards.
- Account balances and monthly payments on all your other debts such as student loans and car loans.
Are you looking to take advantage of this program?
(Photo: orvaratli)
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Hello,
This site is awesome and I am happy that I was able to find information on
the Loan Modification process and what people are experiencing especially
with Bank of America.
My husband was laid off in November 2009 and its been 6 months already and
he still has had no luck in finding full time work.
Of course he was the bread winner of the family and our monthly income has
gone down about $5K which we are trying to survive on my income and his
unemployment benefits at this time which is about $2900 a month.
I hold a mortgage with Bank of America which bought Countrywide Mortgage.
When my husband was laid off I contacted BOA at the time and advised them if at that time they could help us. At the time they advised that we did not qualify for a Loan
Modification and I would have to call back 3 months later and try again and see if we would qualify then. Well a few weeks ago we received a Fedex packet from BOA with information on the Loan Modification Program which was sent to all BOA mortgage loan holders from what I was told.
At this point I am considering to take advantage of the program and from what I see we
qualify except when you enter your gross monthly income which is not what you bring home after tax deductions. It shows that we do not qualify for the program.
Now if I enter our income coming in as $2900.00 (after deductions) a month and our mortgage payment is $1300.00 a month. Then we do qualify which is actually what we have left to pay the mortgage and all the other bills which are the essential every day living expenses.
To me this does not make sense how the bank is going to determine the gross income ratio when actually what you bring home is much less then that after all deductions are made. Does anyone actually know what other expenses can be used when applying in order to qualify when applying for the Loan Modification. The way they are checking if you qualify is if you are over the 31% income ratio with gross income. What about all the other expenses that you have like the electric bill, phone bill, water bill, food bill, gas bill, credit cards, car insurance and car payments. Where do these fit in to all this when trying to be approved by the bank?
I hope there is someone that can give me any suggestions?
Sincerely,
Ali
We tried qualifying when we lost our jobs and BoA said “no”. When I spoke with someone at Fannie Mae (who backs our loan) they said that in order for BoA to work with you you have to miss two payments. This was terrifying, but we really had nothing left to lose. Just like clockwork as soon as we missed the second payment we received a letter to get a modification.
Yes actually might find a lot of information on my site at piggybankblog.com which is all about Bank of America and loan modifications. Please join us! We would love your comments there.
Here is a head scratcher for you…
We qualified for a home mod, we live in AZ our house has significantly dropped in value and we both lost our jobs in May. As soon as we lost our jobs we tried to get a home mod, but it took until September to get it done. In September we received notice that we needed to pay $1300 that day in order to qualify with our next payment being due 11/1, and our trial period payments being due 12/1 & 1/1. Luckily we still have this letter. We have never received new docs and have continued to make the lowered payment, we have never been late on our payment and have confo numbers.
This week we received a letter from BoA that said we have until Monday (1 week) to either pay our past due amount of $32,000 or sign new loan docs that will raise our monthly payment $2000, since we just both started working again we don’t really have an extra $2000 a month just laying around. When we called they said it was because we missed a payment in October, but the mod started 11/1. We had to leave a message for a “negotiator”.
Has anyone else had this happen? I feel like the rug was pulled out from under us, I don’t want to come home monday to find all my stuff on the curb.
Read my posting…almost the same as yours. If you have Chase call the people at home preservation. After I got off the phone with Mr. Rude (oh funny story, I was told that Able was our negotiator and I called yesterday and was speaking to another Mr. Rude and I asked to speak to Able. He said ahhhhhhhhh I don’t think we have……..I’m Able! I was like do you know who you are? So a minute ago you were someone else now you are Able???) Anywho I cd. home preservation at Chase and they told me Mr. Rude is from collections and they would sell their sole to get payment. I have no ideal who I’m suppose to speak with. We can’t afford another $3450 payment. We lost our jobs too that’s how we fell behind…we got new jobs..but if we continue to pay $3450/month until our mod is complete we are going to be sitting here with no food, electric, cars etc! I thought this was suppose to help people that had financial problems. The way I feel continuing the “trial payment” will make us so far in the hole we are never going to get out!
help!!!!!!…im almost about to “get” the trail payment…..is it true that after i go through the trial …the will say i just dont make enough money and not modify?……i thought they had to help…im on an ARM…i am now hearing that after the trial period…only 5 percent of people get perm modified??
also does NACA really work?
Rich, I just paid my 3 trial payments..they were 2 times the amount of my original payment! Now they are telling me “oopsie” you have to continue paying the trial payments because we don’t have our shxt together and still don’t have your modification complete! In 3 months we paid $11000! I don’t even know how to advise you…I feel as if I was lied to. If you have Chase, the only “normal” people there are the ones in home preservation. I’m so screwed on this one…we can’t afford to continue to make these payments. What if it takes a year to get our modification? In one year if we could afford to continue making these payments it would total $41,400
Karen Higton:
That is different for me. I have BAC Home Loans Servicing, Lp (branch of BOA) and my trial period payments were a little more than $1500 a month and my normal mortgage payment is about $2300 a month. I don’t understand why you are paying more that your normal amount. I was on the trial period payment for about 4 months and I did not recieve the Modification under the HAMP unfortunatly. I really can’t afford to pay my mortgage and I don’t know what to do. Please help anyone. I need options. Can you replay for a loan modification under the HAMP if you have already done it once?
Oh it is true alright. Just look at all the people on my piggybankblog that wrote an email to the BofA CEO and describing their situation.
Mr. Wright, I feel for your situation, but your continuous comments are so “gloom and doom” for those that may have a more positive experience. And, your constant references to your “cause” is over the top. I am surprised a moderator (if there is one) to this site does not intervene. Enough is enough.
RICH, I don’t know the answer concerning NACA, but I would like to chime in that not all bank go back on their mod to per ln. My personal opinion is that the majority of the people who post here (other than asking advice)are people with stories of failure with the HAMP, but that does not mean there are not positive ones out there. They are probably out celebrating! and why shouldn’t they. My understanding is that a lot of people never end up with a perm loan because they either misrepresented the truth (on incomes, etc), did have a bank that got caught in the mire of instant trials without resources to turn those into perm loans, and people who never sent back the signed docs. I’ll probably get some hate mail for saying this, but I have been following this and other sites (and have also listened to congressional testimony (one thing I did get off of the site, John) and things seem to be improving. I’d like to remain hopeful (this could change). I have qualified due to substantial loss in income and am told that my bank is very careful and conservative, i.e. they did there homework with me, and that I should NOT expect anything other than a permanent loan once my trial is over. I wish you and every one dealing with this issue the best.
thanks sus…calming me a bit ; )
In Sept. we applied for loan modification due to being out of work. We were offered a “trial payment” which was three payments of $3450. After these payments we were to call and find out what our modification would be. We made each payment and I called spoke to 20 different people and finally I gave up. Then Mr. Rude called me and told me I had to continue making the $3450 payments until the modification was finished. Told me if I didn’t make those payments he would cancel the modification contract and we would lose our home.
>>>>>>>>>>>WAIT>>>>>>>>>>>>>
I was told in a letter that we needed to make 3 trial payments of $3450 and once we proved we could make these payments then there would be a modification?!?!? That amount of money is 2 times the amount our original payments were for. I am so upset…disgusted…sick. This Mr. Rude has me on the phone for 40 minutes trying to get me to pay him $3450 over the phone. We don’t have that much available!!!
Hi Karen,
Multiply your GROSS weekly income by 52. Divide by 12. Subtract 31%. This is most your new modified mortgage should be. This should include property taxes, homeowner’s insurance, etc. If you have PMI (private mortgage insurance), on your current mortgage, then it will be added on top of the 31% along with any other insurance like accidental death. If you have missed payments, those payments will be divided amnongst the first 5 year’s monthly payments. Any late fees, late interest, attorneys fees, etc. are to be written off by the lender at the time of the modification of the “new mortgage”. My first modified payment was March 2010, approved Feb. no payment March, got document outlining new modified mortgage April.
If you are paying 2X’S your regular monthly mortgage with job losses…..you are not getting a “modification trial payment”….more like excelerating the pay off of present loan. If you have missed payments prior to asking and submitting for modification…, you may have been given a “forebearance” payment not a “pre-trial” modification payment.
If you have since gotten new jobs that pay exceptionally good and no longer show a loss of income…, your lender is again, trying to get as much $$ off of you while you are still able to make those payments. This has nothing to do with modification….
If you still have circumstances that make you eligible to modify, I would suggest re-submit every piece of “updated, signed, loan # inscribed, last 4 of SS#’s” documentation to your lender by fax and registerd mail with receipt confirmation, FedEX, or UPS with tracking history. Send these to the lender’s “loss mitigation” department. If no response, maybe missing a payment or 2 would certainly draw their attention… If all else fails, you can stop making the payments, live in your home for about 1 year, save $$ and re-invest in something that is more affordable with the market prices still not recovered. True, it will affect your credit score but it will recover and you could afford to have a roof over your head…
I am filling out my documents for my HAMP which I received from BOA this past month.
Of course I called and it took about 4 people to help me in filing the documents properly which I still dont feel the last person I spoke to was correct. But I will send them in and see what happens. Where does your monthly living expenses fit into to this when they determine if you qualify or not? I was told to send in a separate sheet with what my living expenses are with my application and also they asked if you have any assets on the application and what the total would be which needs to be declared. Which I also do not understand how that comes into play also.
If anyone has any idea please let me know if you came accross this situation when apply for a HAMP.
Tks,
Ali
I have a solution and it has worked for some. You see, I got so mad at the BofA Hamp thing that I finally sued them. I also created a blog called piggybankblog.com where it gives you the CEO email and tells you what to say and phone numbers of the BofA CEO’s in charge. I created this site for others that are being abused and one of the people out here told me the CEO office called them back and said that CEO’s have all seen my page.
Just go to piggybankblog.com and select the “Write an email to the BofA CEO.” There is also plenty of people there who are in the same situation. We are all uniting as one voice and we would love to have more of you with us.
Divided we may have fell, but UNITED WE MUST STAND!
Piggybankblog.com
Hey I am not advertising or anything, but I am suing Bank of America and I noticed that on their site, they have the actual thing the banks use to fill in yor information for HAMP. It is at unitedlawgroup.com and it is on the left side of the page under the title SB94 or something like that. It will actually do the same caluculations the bankd does and tell you if you will qualify. I just reading the comments up above where the person was describing the %31 percent thing ect.
Also, thank you guys for checking out my blog. I have put a lot of work into it and I did it for everyone who is in the same situation. There is a lot of info on it, but I try to make people laugh too. -piggybankblog.com
I created a blog called piggybankblog.com where it gives you the CEO email and tells you what to say and phone numbers of the BofA CEO’s in charge. I created this site for others that are being abused and one of the people out here told me the CEO office called them back and said that CEO’s have all seen my page.
Just go to piggybankblog.com and select the “Write an email to the BofA CEO.” There is also plenty of people there who are in the same situation. We are all uniting as one voice and we would love to have more of you with us.
Divided we may have fell, but UNITED WE MUST STAND!
I AM FIGHTING BACK!
Piggybankblog.com
I owe a bit less than $50,000. on a home which has lost substantially in value. Yes, it’s worth more than the mortgage but with other foreclosure homes on the street that may be academic. I became disabled a while ago and no longer have anything beyond disability income. What I was wondering is if I can come up with a lesser amount, borrowed from relatives, would there be a chance I could offer and get a lower payoff from the bank? We’re talking $25,000. or so. Anyone ever able to do something like this? It seems to me that it is the same as forgiven debt on a short sale only in this case I’d be staying in the home. I would not have to come up with the monthly payment which could be a hardship. How would I pay back relatives? Maybe m,ore slowly; possibly with some work I am able to do (certain types of paperwork, bookkeeping) and an agreement to forego certain potential inheritances, letting myself be bypassed in their favor. Anyway, I was wondering if something like this was possible or made any sense. Any bank people out there who might comment, even if anonymously?
Frank,
I’m not a banker, but I wouldn’t get my hopes up. From all I’ve read regarding the TARP allocations (to include HAMP), there are enough tweaks and changes to already existing programs to drive the banks mad trying to keep up, that I doubt they are interested in wheeling and dealing in different kinds of arrangments. There is massive Federal pressure to make existing programs work (and we all can see that there have been equally massive problems standing up these programs). Secondly, the banks are taking a hit, even with the incentives from the Fed, that I doubt your plan would be received well (regardless that you may be in need of something like this). Bottom Line, sadly, for you, your case may not be the most risky for them either, they’ll spend their time on loans with a few more digits, I am sure. Just my opinion.
Moderator, where are you and what are you going to do about the incessant redundancy of some posters (well, one really). Come on already.
This information has been very very good.
These HOPE and Making Homes Affordable are all political Mahem and are not true. I have been trying to get a loan Mod and have recently lost my job, it all boils down to the bank and lendor. NONE OF THESE PROGRAMS ARE WORTH ANYTHING, THEY ARE LIES AND HURT PEOPLE WHO ARE ALREADY IN A DESPERATE POSITION.
Does anyone know if when you do a home modification, will they consider a reduction in the balance of the loan based on the value of the property? I had heard on an advertisement regarding a law firm that had supposedly successfully obtain modifications for their clients and reduced the principle. Not sure if this is possible, I just received my final papers and was trying to figure out if I should pursue this option???
HELP does any know the answer to this? I can’t seem to find it anywhere in writing. I tried to get the Home Affordable Modification from USbank after being laid off and they said since I needed to have proof of unemployment benefits for at least 9 months in order to qualify for the program I would not be eligible since I could only show I was getting unemployment for 26 weeks, 6 months which is the norm in Missouri. I only need the help until I find a new job. How can I prove I get 9 months when you only get 6 months of unemployment at a time. Anyone else having this problem?
Does anyone know if you apply for the home modification (after filling chapter 7 and listed the house) if both your first and second loans are modified? I have not paid a payment for 10 months after a nasty accident and was forced to file chapter 7, Now finaly after filing, my bank (wells fargo 1st morg)is working with me on a modification. They will not tell me if BofA can still forclose.When I talk with BofA they say you filed bancruptcy and we cant talk to you.Meanwhile Wells Fargo is proceeding ahead with the modification.What can I expect? Do I really have a shot at saving my house now that I am disabled and my wife has been on unemployment for well over a year? My income has been cut 60% and it looks like it will be quite sometime before it will go up. Also I have never been late on my $4300 payment in 16 years.
I was with making home affordable for 9 months it still haven gone threw yet i had tried payment, since i file chapter 13 may 2, 2010 not for my home other reason my house & car not included , my file had to go in the bankruptcy department my lawyer have to let them know she was representing me, so now they have to send my packet to her, so she can show the the judge an get the okay from him, i’m still waiting on my fed ex package to come but long store short i know chapter 13 your house is protected look on line and read about chapter 7 an just type in your question on what you would like to know, its a pain trying to get (M H F) i’m like everybody alse on this site when you call you have to talk to 5 or more people and that can be frustrating
Help!! I applied for a Home Affordable Modification with BOA in March 2009. I called many times for 3 months and every time I’m told that since I’m current on my loan that there isn’t much they can do for me, and they needed to help people that are behind on their payments before they can consider me. I was using my savings to pay the mortgage, which ran out. I stop paying in June. I called once per week for 11 months and each time I called, I was told that my application is under consideration. On May 28th, 2010 BAO called me to tell me that they cannot help me because my husband’s 2009 tax returns shows that he lives in NY (a different address from our primary resident.) I explained to them that my husband and I was separated for a short time towards the end of last year and he moved in with a friend in NY and since it was around tax time he used his friend’s address so he could receive his check there. My husband moved back home after 2 months (I can provide whatever proof they wanted except for his 2009 tax return.) They told me only his tax return would be accepted as proof for residents. We both live in this house, our primary house. I am 10 months behind on my mortgage. Oh, we also own a rental property (which has lost more than 50% if its value). Every penny I receive goes to the mortgage for that property yet BOA included the rent to calculate the 31% which made our 31% higher. I do not profit from the rental property so I don’t see why they should use the rent to determine the 31%. They also used Gross to calculate the 31% and Net for all expenses. I don’t want to lose my home. I don’t know what to do!
Talk to a lawyer and ask about bankruptcy your house is protected under bankruptcy or go online and read how you protected with doing bankruptcy.
So since BOA denied me for a loan mod or any other options I decided to do a short sale which I was approved for. I got an offer on my house which I have accepted. BOA had their appraiser apprised my house and now they are not pleased with what the appraisal came back as – they want 45k above current market value. What the hell is wrong with this company? I live in Florida, do they not know what is happening down here with the housing market! My agent told them that that was impossible and he cannot send this house at that price. He has provided current comp to prove his point. It’s been 4 weeks and still nothing from BOA. BOA wants blood from their customers!
Your story sounds just like my Jen. You should sue them before it is too late. I just wrote on my blog the other day what I think Bank of America is doing. You should check it out. I posted it under “Why Bac Home Delay” at piggybankblog.com.
Piggybankblog.com is a place that anyone who feels that they have been abused by Bank of America should go. There is a lot of information there.
John Wright
Piggybankblog.com
I was wondering if they will work with you on the Loan Mod if you are late on your credit card payments…
Yes you still can get loan Mod i put my credits cards together i file bankruptcy 05/02/2010 late payment dont stop making home afordable also if you late on your mortage that helps i still try to pay it before the month end so it wouldnt show up on my credit.
We’ve gone to the NACA event in Dec 09 in Charlotte. BOA agreed that we should go on trial payments for 4 months then we will qualify for loan restructuring at 3.875% we made all payments on time just to get a letter from them saying that our laon has been sold to IBM. Along the way they put all the money we paid them over the 6 months now into a separate account and did not apply it to interest or principal.Our credit reports are showing delinquency and we had many cards closed by issuers eventhough we always paid on time and were told by BOA reperesentative at the event that it won’t hurt our credit. Since our credit was damaged we are thinking of stopping all payments and let them forclose on the home. We always paid on time to keep good credit but since it is damaged now this gives us the opportunity to let the house go.
I AM LOOKING FOR A LAWYER AND I WANT TO SUE BANK OF AMERICA. IS IT BETTER TO JOIN A CLASS ACTION SUIT OR FILE ON MY OWN?
here will be your reply my friend. After 9 months of succ. trial payments, they simply state “THE LENDER” wouldnt modify your loan . Gets them (wf)
servicer out legal ramafications. sorry you loose
too. Oh ya, not to mention, they could care less
about your problem, they got their govt, money,
thats all they wanted.
That is why you have to sue them. Check out piggybankblog.com and it will tell you why. It is under “why bac delay.”