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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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G-
Ok, so I made my last of 3 trial payments. Today, I received a call from Wells Fargo. Guess what? I get to send in ANOTHER hardship letter, MORE payroll stubs, and ANOTHER financial statement. Once they recieve this information, they will review it and decide whether I get a FINAL home modification (HARP). The final paperwork can cause me to be declined, cause me to get the same payment that I’ve been paying during the trial period, or it could give me a higher/lower pament then I’ve been paying during my trial payment. They say that it should take 10 days to review this inforamtion, but to expect at least 30 because they’re BEHIND. The part that stinks is that this has been going on since March. Well, my husband is in the car business and OBAMA’s “Cash for Clukers” caused a false spike in the economy for those in the car business. So, needless to say, my husband who is commissioned based, with a spike in sales the last 2 months, recieved 2 out of the norm paychecks. So, I’m hoping this doesn’t kill our program.
I talked to Wells Fargo AGAIN about the Delinquent payment issue and Credit report. The lady (Chrystal) told me that the payments go in as partial payments and that at the end of the trial period, they will modify them to be full – ontime payments. So, it shouldn’t effect our credit once the modification finalizes. In the meantime, it will effect our credit.
I
Hey everyone!
I too have applied for the MHA program through Wells Fargo. I was at first denied (after waiting over 120 days) & after a fee phone calls of asking why I didn’t qualify, all of sudden I qulaified. I was overnited a packed & was once again let down the MHA offer to me was going to save me $62/mo! To be honest $62 isn’t going to save my house. I’ve still be thinking about signing the paperwork I’m desperate & I guess any savings is better then nothing. But at the same time I wonder is it worth it? I’m so confussed & fustrated & I don’t know what to do. Is there anything else I can do to nogatiate with the bank? I can’t refi because my house is for sale & even if I take it off the market I’ve been told I can’t refi for 3 months after it’s been off the market. I don’t have 3 months to wait as I only have enough money saved up to make payments for maybe 2 months. Any help/ideas anyone has would be greatly appreciated!
Hi Stephanie,
I am with Wells Fargo as well. We have PMI insurance (private mortgage insurance with our Freddie Mac loan)has a “Loss Mitigation Department” that is there to assist homeowners during this terrible time. If you have PMI, call them and see if they have a “Loss Mitigation Dept.” This service is free. We seem to be getting better responses now that she is involved. You say that you “qualified”… The HAMP should qualify you for a mortgage of no more than 31% of your total gross income so, if you have done the math and it saves you only $62.00, then you have to make the decision of whether or not to keep your home or continue to “jump through the hoops” and hope that things get better. Good luck, I hope all works out better for you. Darla
Hi Darla,
Thank you for your kind words. I too have PMI on my house. I called & talked to someone on the HOPE hotline yesterday & was told that if you have PMI insurance you don’t qualify. What makes me crazy is why did they say we qualify knowing we have PMI? Have you heard different from the “loss mitigation dept”? I’m sorry to hear you are in a similar situation & I hope you can make things work with Wells Fargo. Good Luck! Stephanie
Stephanie – If the mortgage company finds out that your house is on the market, you will not qualify for the HAMP program. They do a drive by and if they see a “For Sale” sign in your yard, you will be denied the HAMP program. You have to want to stay in your home to qualify for the HAMP program. This is what Wells Fargo told me. Please check with your Mortgage company on this. Maybe you can ask without telling them it’s on the market, but this is how I understand the program. It stinks, but I think it is one of the rules.
HI Stephanie,
If you have a “Fannie Mae or Freddie Mac” backed loan and if you did not have ? 20% down payment at the time you took out your loan…your loan should be backed with PMI (private mortgage insurance). The fact that you have PMI insurance DOES NOT DISQUALIFY YOU FROM QUALIFYING FOR THE “HAMP” “MHA” PROGRAMS DESPITE WHAT THE “HOPE” hotline is telling you. Your PMI “guarantees your loan with the lender in the event you should default, foreclose, etc. The PMI is responsible for making sure that the lenders do not lose any money on your loan. Therefore, the PMI want to help you in anyway they can because if you do default on your loan…. they have to pay the lender. You need to talk to your PMI provider and try to get someone in the loss mitigation department if they have one to go to bat for you. This is a service that they owe you and it is paid for with your monthly mortgage payments. This is not something you have to pay additionally for out of your pocket…it is their responsibility and obligation to you to assist you. Not all mortgages require PMI insurance and not all PMI insurance companies have a “loss mitigation department”. I am just so thankful that mine, (United Guaranty), does and the rep that I have been assigned to has been really wonderful, helpful, encouraging, and knowledgeable. Also with a PMI rep assisting with your case, the lenders are more likely to address your case more effeceintly since the (PMI) is involved in the process and wanting to make sure that they, the lenders, avail themselves to every program and means to try to make it work for the homeowner. Not all distressed homeowners are going to qualify, but, most will. My PMI rep has been what has kept me going throughout this ordeal. Otherwise, I would had totally lost my mind!
Stephanie I hope that this clarifies the purpose of the PMI and that you are not “disqualified for having it”. Unfortunately, there are a lot of people with good intentions that don’t know anything about the programs, yet they are the ones that we have to contend with….even supervisors are not always the best sources for information. Talk to your PMI insurance provider and they will at least point you in the right direction. Good luck, Keep me posted, Darla
Hi Shannon,
Your situation is similiar to ours and we are just getting started in the process with Wells Fargo. Please, please keep your updates coming as you have confirmed what I’ve been told from Wells Fargo regarding the damage to our credit score and I am weary about starting this process.
Thank you. I’m rooting for you that it works as it should.
Take care,
Single MOM of TWO
Hi everyone,
Just today I started the pre qualification process which Mike @ Wells Fargo said its your lucky day because I was qualified I don’t understand how my payment has dropped from almost 1500 to 725 a month ????I am very weary about the whole thing My credit is great and I dont want to ruin my credit if this whole headache is going to save me less than $100 a month most of the above sounds like what I have been told I am hesitating the whole 3 mth trail period…. can someone share there experience once the “trial period” is over then what are we looking at thank you and everyone hang in there GOOD LUCK
Hi MAR,
The program is designed to keep your mortgage (taxes and insurance included if you are now paying them with your current mortgage or they can be added to your “modified” mortgage) not to exceed 31% of your gross monthly income. If you are struggling now and it will significantly cut your mortgage, sometimes 1/3 to 1/2 of what you are now paying..why not do it? If the plan works out where you can afford to make additional principle payments to shorten the term of your loan and thereby building your equity…it doesn’t sound too bad.
If your credit takes a few dings, at least you can afford to stay in your home and that is the goal of this program. Your credit will recover eventually. Just know for certain that you and millions upon millions of others are in this disastrous economic situation not by choice but it is your choice whether or not you want to stay in your home and weather this storm out. By doing so, you most likely will suffer a few dings along the way but hopefully it will be well worth it. Good luck, Darla
Just an update…
We have finished our 3 month trial period. I still do not have my “Final” payment amount or an answer whether we “Ultimately Qualify”. We have to send in more payroll check stubs, another financial statement, and another hardship letter. They will review all of this to see if we STILL qualify or not. I was told that most people end up getting the same payment as their trial period payment, but based on the last set of documents, the payment could go up/down or even cause you to no longer qualify. In the meantime, there is a “Transitional” payment that you make (same amt as the trial period payments). You make the “Transitional” payment until you get a final answer. Could take up to 30 days. As far as the credit goes… I’m with Wells Fargo and they told me that they will send the trial period payments in as “Partial Payments”. This will effect your credit. HOWEVER, at the end of the program (once you are told whether you ultimately qualify and receive a new mortagage), they will re-submit the payment status to “Full Payments” made on time. This should restore your credit. If this does not happen, here is a number you can call to get it taken care of. 1-866-899-2151. This number is to a Wells Fargo agent that should be able to correct the payment status with the credit agencies. I’ll keep everyone posted as we near the completion of our HAMP process. FYI… we do not pay PMI. We have an 80/15/5 mortgage that kept us from needing PMI. We still qualified for the HAMP program. The bad part is that they won’t refinance the 2nd mortgage. However, I did read something recently that might change that. I’m not sure that we would qualify since it just went into effect in August or September. I will caution everyone to READ all of the fine print. You don’t want to miss anything that could disqualify you from the progrm or delay your answer.
Thank you so much for the updates Shannon. I too have finished my trial payments and am waiting to see if I will permanently qualify. I called my mortgagor (Mortgage Service Center/Banco Popular) and was told they have until the ending of November to provide me with a response as to my qualification since my last trial payment was scheduled for Nov. 1. It’s terrible to be kept in limbo–all they tell you is “it’s being processed” but give you no details. Before I was approved for the HAMP, I was back and forth with them for 5 months because they wouldn’t qualify me until ultimately they did after I pestered them continuously (I literally called every single day). It pays to keep harrassing them and making it clear to them you do not want to lose your home.
Well done! I have been looking all night for good information on this topic and i couldnt find it until now! Thanks so much.
I have tried to get my mortgage co. to help me with a loan modification. They participate, but my loan doesn’t qualify with them. I have a double wide home, with a piece of land. But no, people won’t help you if you have a mobile home. Only thing is it can’t move. It’s brick underpin and on my land. therefore i want to keep this house. I guess obama forgets about the little people only the ones who live in houses. Which sucks. I’m having a hardship too, and I’m working 2 jobs, and it’s still not enough. Can’t anybody help
My home loan is with EMC Corporation – One of banks bought by J.P. Morgan Chase. My mortgage rate is adjustable, and the current value of the house about 65% of the amount I owe on the property. I applied for loan modification program so that the loan can be refinanced at a fixed rate. The bank declined my application because I could afford to keep making the payment. Can anybody advise me on what to do? My 1st loan is fixed for 5 years, and will start adjusting next year. Can somebody help or advise me on how to get the rate fixed?
AOS-
It sounds like you need to apply for a refinance, not a modification. Can you try that route? There are 2 programs.
Just wanted to pass this information along…
I was informed by a “servicing representative” for our mortgage company that assists homeowners with completing and submitting their paperwork back to the lender…”beginning in 2010, the Administration is requiring the banks to “over haul” the way the banks are processing the HAMP and MHAP programs so that it will be easier for homeowners to apply and qualify for the programs. I do not know if this is true, but she seemed confident that this is going to happen…
On another note… If you have been “denied” or are having difficulty with your lender and your mortgage is backed by HUD, contact your local HUD agency and ask to speak with a counselor. Some banks, Chase in particular, is making it extremely difficult for homeowners to qualify and are not “playing by the rules” as they should be. Apparently, the HUD counselor can and will also work on the behalf of the homeowner in getting the lenders to work with the homeowner.
Also, apparently those that do not qualify for “modification” but meet the criteria for another program, “Making Home Affordable Refinancing” program (MHARP), those loans will be adjusted to the current market value and the loan will be restructured accordingly. This seems to what homeowners with ARMS and/or are self employed are mostly likely going to benefit from.
Again, if your loan has PMI (mortgage insurance), and they have a “LOSS MITIGATION DEPARTMENT”, get them involved ASAP! I did and my application for the HAMP was processed and I am now approved for the “Trial Payment Plan” for the next 3 months. With the PMI loss mitigation representative working with me.., it took about 30 days for my loan to get processed! If it is a HUD loan, get a HUD counselor involved ASAP! The old saying, “it is the squeaky wheel that gets the grease” seems to apply.
Just passing along more info as I get it. Hope that this will help. Darla
Darla,
I have read all you say about PMI. We have been in the HAMP Trial payment period since 10/1. We will be making our 3rd trial payment at the end of the month. My question is we pay pre-trial $1,693 a month….$310 goes straight to PMI and that is what was killing us. I have read that PMI is NOT calculated in the 31% of gross income. Is this true?
Hi Jennifer,
Cannot tell you for certain but the PMI rep I have has said that the 31% of your total monthly gross income should include all taxes, insurance(s)and your monthly mortgage….yet, when I got approved, the amount of 31% of my gross monthly income was about $220.00 less than my trial payment is and it also includes my PMI insurance and a mortgage accidental death insurance that I had prior to applying for the HAMP. Therefore, I don’t think that the PMI is calculated in the 31% gross monthly income and until you meet or pay down ? 20 % of your mortgage…only then can you drop the PMI insurance. I would ask your PMI rep BEFORE YOU FINALIZE YOUR HAMP, if the mortgage were to reflect a “debt forgiveness” on your new mortgage, ( to meet 31% of your total monthly gross income but, this seems to be happening more so with those who cannot “modify” but have to refinance), ? wouldn’t your PMI $ also be reduced to reflect your new mortgage amount?
I don’t know if this will help you but I think it is safe to assume that your PMI will be added on top of the 31% along with any extra’s (accidental death mortgage insurance, disability insurance, etc. that you may have).
Keep me posted and good luck! Darla
The MHA program is a joke. Our annual income is est 132,000 annually in Louisiana so we’re probably considerd middle class to upper middle class since we have no children. We wanted a lower interest, current on our mortgage, excellant credit, sufficient income, and low debt ratio but we have encountered every possible road block from our mortgage co. that you could possibly imagine, none of whick has anything to do with our ability to pay.
Amber,
My last trial period payment was due 10/1. I made my first “transitional” payment that was due by 11/1. I was told to continue making the “transitional” payments until I receive the final modification papers. They told me that it is taking on average 60 days from the last trial period payment. So, they should have an answer to me by the end of November. However, the dates change every time I talk to them. I received a call from someone in the Loss Mitigation department on 10/26 congratulating me on qualifying for the modification. He told me to expect someone to contact me within a week. When I called Wells Fargo today, they have no record of anyone calling me on 10/26 and said that my modification is still not finalized. Everyone in the Loss Mitigation department says something different when you call. They have no clue what’s going on. They have automated calls going out for bogus reasons because they don’t know how to update the information correctly in their systems. So, I’ve received numerous calls asking me if I’ve returned and signed my original papers. I returned all of the papers in JULY. It took until a couple of weeks ago to get ahold of someone in the Loss Mitigation department that knew the correct field to update with the correct information. I’m guessing that my mysterious call was related to her updating the field that said my final paperwork was sent in and accepted. However, it confused the hell out of me since I am waiting to hear if I qualified for the program or not. I seriously thought this was my confirmation. Nope! Not yet. Just another unorganized part of the program. This program is taking WAY too long. I’m surprised many can make it through the program without losing their home or selling it. We started the program 3/09 and still don’t know if we will qualify in the end. It shouldn’t take this long.
Another update…
I’m totally ticked off. So, I applied for HAMP in 03/09. It is now 11/09. I have made 4 trial period payments. Today, I get a call because they are JUST NOW reviewing my financial information. I was told over the phone that we will NOT qualify for the HAMP program because of our savings. They never once asked for savings balances in the beginning when they qualified us for the trial period. NOW, I’m being told that we will NOT qualify for the HAMP program. What has this done for me? Well, I’ve NEVER been late for a house payment. They have succeeded in calling all of my trial period payment late because you’re not allowed to make your normal payment. They have put me behind on payments because I’m going to somehow have to pay this money back. They’ve delayed me getting my house on the market (while the market gets worse) because they made me believe that we qualified for the program. AND I will have to use ALL of the savings I have to get out of my house and into another one. How does this help me?? So, then I will no longer have the savings that kept me from getting in the HAMP program. So, beware if you are responsible and have savings – you’re screwed!! Shame on you for being responsible. Seriously, who does this program help? Anyone? I don’t know how anyone would fit the criteria. The program has hurt us – I am in a lot of trouble and my credit is going to be jacked! I really wish that I hadn’t even attempted the program. His final words were… Give them some time, they MIGHT have an inhouse program that can help. REALLY?
MY story is the same as everyone on this board, excepting I was kept on the loan modification program for 7 months. Fallen behind by about $20,000 being my monthly payments were cut in half. Now being expected to pay this money back immediently. I’ve resubmitted my application to Chase as this will prevent them from taking any leagl action or forclosing on my home. So wanted to let you all know we can fight back, file complaints. I contacted my local senators and within a day was sent a letter in response from senator Schumer letting me know they refered my letter to the Comptroller of the Currency. I also sent a complaint form to the Attorney general,New York State Banking Department, which has notified Chase to resolve my complaint in 30 days. President Obama also got a letter, after all this is his progrom. The first 2 replies were received in 2 days. Haven’t heard anything from Obama, but its only been 4 days and with the 4th of July weekned just passing it would be at least a week before any aid to the President would open it.
I was never late with my paymnet or missed a single one. They really screwed me by keeping me hanging on so long, I started this process back in Feb “09″, 7 months in the modification program and 2 weeks for them to deny me.WTF!!!
I aplied to lower my intrest rate which is 8.075, they will deny me and the reson being is they don’t want to collect LESS intrest on my mortgage. PLEASE FILE YOUR COMPLAINTS WITH OUR GOVERMENT OFFICIALS, THE BANKS ARE NOT PLAYING FAIR!
Another update:
We have made 4 trial period payments. Today, I received a phone call from Wells Fargo saying that we are NOT going to qualify for the HAMP program because we have too much savings. Seriously? My savings hasn’t changed since I was allowed to enter the trial period. In fact, my savings has gone down. The problem is that they never asked about any savings in the beginning of the program. So, now what? He tells me to give them time. They’re going to look for an inhouse program and see if any of them would fit. So, thank you OBAMA for allowing me to get this far behind on my house payment because your program is not clearly set up. I have NEVER missed a house payment and I’ve NEVER paid it late. The trial period has caused me to fall behind due to the reduced amount that I will now have to pay back after 4-5 payments at a reduced rate of over $1,000/mth. I will have to use all of the savings that disqualified me to pay this back, sell my house (at a loss), and buy another house. Thanks for nothing!!!
PER THE HAMP GUIDELINES YOU CAN HAVE THREE MONTHS WORTH OF MORTGAGE COSTS IN SAVINGS.
AND THEY ARE NOT SUPPOSED TO CONSIDER RETIREMENT ACCOUNTS, AS SAVINGS.
Don’t blame Obama, write Obama, your attorney general,the The banking dept, the comptroller of the curremcy, your Senators. Tell them of your experiences and what this program has done to the hard working americans. I beleive that they might be expecting problems but need to have people write them to let them know. We can fight back, the more people that write letters and file complaints the stronger we will be.
After all we are the ones that keep this eonomy
going.
What a scam!! Just found out at the end of my trial period that I was denied.. Why? Because I mailed in my payments, per the instructions, prior to the date they were due. Now this hurts my credit score and I have to replay all the money difference over the last 4 months!!
Took me hours to get all the documents in just to find out at the end.. They Lied.. So, the mortage company gets their application fee, denies me for miss informing me, and I will have to reapply which means they get another application fee.
How do I control how the banks process the payments earlier??????? I was told I should have paid-by-phone, which costs $12.50 per transaction fee and the money HAS TO BE PROCESSED ON THE DAY ITS DUE!! They never told me this….
After hours of deliberations with the account people at GMAC, I now have to reapply.
I originally applied for the MHA program in March of 09. Since they “couldnt locate” my paperwork in May, after 2 months of telling me they had it, I resubmitted everything in June of 09. Third time is a charm, as they lost the second application so I resubmitted a THIRD time 7-9-09.
Now Im thinking that maybe this is b/c WAMU was bought by Chase, so b/c their unorganized reorganization as a company, I am the one who has to spend all the extra time copying, mailing, faxing stuff 5 times.
That, I can handle. What I am irritated with is that finally they tell me they have all my paperwork…….and now they get another 60 days to give me an answer. Their 60 days to tell me is up on 11/23/09.
In the mean time, my husband got laid off, which was our primary source of income. So I faxed that information off.
All our payments have been on time. I dont want to loose the home we worked so many years to build.
Someone in an earlier post mentioned savings being an issue….now we dont have much, and the documents I have found online for loan servicers to go by says you can have 3x your monthly debt payments in the bank. 401k is protected under this program as far as I have investigated.
Now we are in the position that if they dont reduce our payments, and quick to 31% of our new gross income, we are going to be eventually out of our home.
Does anyone have any advice on short sells?
My neighbor is in a short sell situation but his house hasnt sold in 6 months…….seems to me if their are no buyers in our home price range, why should I even consider a short sell? Seems almost better to foreclose, but I am not familiar with foreclosures at all. Neither is fabulous for your credit.
I call every week and get the same answer nearly every week “you should call in a week or two” Ive been told this since mid August. Do they document every call you make, even if you dont specifically request them to document your call? Does this really help??
Im as frustrated as everyone else. I totally take responsibility that maybe we bought a house a little out of our price range, but what about the lenders responsibility to do legitimate loans that they can ensure that people pay back? Still, no one it seems, is making the banks take responsibility.
Is it true that if you have any late payments, it disqualifies you from the home affordable program?
Thanks
One more thing…..I have a friend who does loan mods. He is the interface for a legal team that does the “negotiations” for your loan mod.
would me scraping up 3K to hire his legal team help any? Or is it just another scam for the lawyers to make money?
He says they can “negotiate” with your bank to reduce your payments, and stop payments for 5-6 months.
Sounds like a bunch of crap to me but I only have one chance at this loan mod so anyone’s opinion is welcome!
I have applied 3 times and all three times have been denied, but never for the same reason. First reason: I spend too much money on groceries. Believe that, the lady actually told me that the average 5 person household should only spend 550 per month on groceries. That is 1.10 per meal per person. She actually told me to buy canned fruits and veges instead of fresh and buy powdered milk instead of the real stuff. Are they in cahoots with the medical industry, “let’s keep children unhealthy to drive up healthcare” Also, I had an arrangement to pay my property taxes monthly, they decided to pay all in full. I questioned the lady when this happend and she stated since they did that I will be geeting approved. Nope! Just drove my monthly payment up by 133.00. Doesn’t even make sense, I request my mortgage payment to be lower because it is too high and they try to help but in the end just raise it even more. I am not behind, maybe I should try to strong arm them or hell, just take the place all together and they can take to loss. Second denial: We made too much money. Ok, I can dig that. So we let it go. Well, then, 3 mos later I had to quite my job to stay home with the kids because my husband has a 2 year job in which he needs to travel out of town. I had no one to be the children. Reapplied, now we just got the denial letter “this request is not an option at this time” What does this mean? I’ll tell you. I called for an explanation, the lady, in the same breath mind you, said “the investors feel it is too much of a debt forgiveness, but I have seen them forgive 10k-15k” I said “really, because my proposal is for a forgiveness of 4K, which 3300 of that is because you paid my taxes off when I already had an arrangement!” My point, they are not going to help most of us. It is a ruse. They are taking the proposals but coming up with different reasons to deny. This is very frustrating. I make my monthly payment as all of us try to do and I am very thankful that we are ok financially right now but one week off, one layoff, one tragedy and we will lose everything. Isn’t this program supposed to be an avoidance of that?
Since my last angry post, I received a final approval for my HAMP program. Once again, the employees on the phone have no clue. They called me a week ago and told me that I was not going to qualify for the HAMP program because of my savings. This is good old savings in a savings account – not pension or IRA, etc. Anyway, apparently he was wrong. Thanks so much for the added stress! So, I got the approval in the mail today. The payment changed. It was increased by $185.00 a month. This was due to a spike in my husbands income due to “Cash for Clunkers”. More cars were sold in July/August then any other month this year. Well, that increase caused my husband’s commission avg to be more then normal. So, it increased my payments on the program. Overall, the program will help us, but we’re still not where we need to be. Our original payment was $3,200/mth. Now, it will be $2,300/mth. It helps, but we’ll still struggle. Our only hope is that the economy turns around soon.
I was told that once we make the first new payment, they will finalize the program for us and clear up our credit. They said to expect the credit to be cleared up within 30 days of the first payment. I’ll continue to keep people posted.
Start to finish – we started the process in 03/09 our new loan effective date 12/09. If you’re just starting the process, hang on for the ride – it’s a long one.
Shanon, I am in the same situation you were.I just received a call that I was denied because I had too much in my savings. The problem is that it is not even my savings. My dad added my name to his stock account in case something happens to him. So I do not even have access to the account. Now I owe back payments and do not know how I am going to make up for. I guess I have to look into a short sale. I’m still hoping that I too will receive a letter in the mail that says I am approved but I will not hold my breath.
G-
It’s sooo frustrating. I’m still waiting for the final signed paperwork. I hate being told one thing and then later told something completely different. The loan isn’t final until the bank signs it. I think that is the last piece. I’m still waiting on the signed copy. I’ll keep you posted. It’s still very possible that we didn’t get the loan.
I’ll keep my fingers crossed that your loan will happen.
I think most of you do not understand the Obama Home affordable program. There is a Home Modification and a Home affordable program which are two separate programs. Go to the website download the documents and understand the differences. The mortgage/banking institutions are definitely taking their time and not helping the homeowners who qualify for the Home Affordable program; people who have maybe lost their jobs and are struggling to make their payments. This is not a program to give someone, who just because the value of their home has decreased, (which is almost all of the country) the opportunity to refinance. Read, educate yourself and take action.
Hello Everyone. I know all of this loan modification and refi stuff is very confusing. I have been in the mortgage industry for 16 years and have just complete my own loan modifications on rental properties and short sold 2 of my other rental properties.
I now do loan modifications and short sale negotiations full time.
I just sucessfully finished 3 Making Home Affordable loan modifications in 2 days. Some banks will do verbal updates on the phone and get an answer within minutes. If you want honest and trustworthy help, trust I have been there myself. Call me at 916-300-0499. I am with National Home Strategies, we charge nothing upfront which I like. We only get paid when you get your great loan mod, then the fee is $2500.
Good luck to you all.