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June 23rd, 2010

HAMP: Borrower Neglect or Bank Incompetence?



Earlier this week the Home Affordable Modification Program (HAMP) received yet another black mark on its increasingly-poor record. Reports now say that more borrowers have dropped out of HAMP than have graduated to “permanent” successful loan mods. According to our friend Alan Zibel at the Associated Press (AP), 155,000 borrowers dropped out of HAMP in May alone; 436,000 borrowers have dropped out since the program began.

How many borrowers has HAMP help so far? Unfortunately, only 340,000. While the program will still be up and running for a few more years, if the numbers continue like this, this program will have failed to even come close to reaching the 3-4 million borrowers it set out to “save” from bad loans or foreclosure.

Why So Many Dropouts?

According to lenders and servicers, borrowers are still failing to provide all the proper paperwork. This ongoing issue (we first wrote about it back in December) has been especially pronounced as of late given the recent changes to HAMP which require all the documentation to be submitted at the start of the process.

However, according to the AP and the countless comments we have received on this blog, borrowers are claiming that banks are misplacing and losing their paperwork.

We want to hear from borrowers and mortgage professionals alike — share with us your HAMP experience — what do you think is wrong with HAMP? –Leave us a comment

What Good is HAMP?

With the number of HAMP dropouts now exceeding the number of permanent mods, and given the fact that some experts are of the opinion that the majority who have been “permanently” helped by HAMP will still end up in foreclosure, I have to ask you, “What good is HAMP; is continuing the program even worth it?”

From the AP:

As more people leave the program, a new wave of foreclosures could occur. If that happens, it could weaken the housing market and hold back the broader economic recovery.

Even after their loans are modified, many borrowers are simply stuck with too much debt – from car loans to home equity loans to credit cards.

“The majority of these modifications aren’t going to be successful,” said Wayne Yamano, vice president of John Burns Real Estate Consulting, a research firm in Irvine, Calif. “Even after the permanent modification, you’re still looking at a very high debt burden.”

Unqualified Borrowers: Are You Getting Help Elsewhere?

It’s hard reading comments day in and day out about borrowers who are frustrated with the HAMP process and/or those who didn’t qualify for one reason or another. Many times they’re fed up with their lender or servicer — they receive conflicting information, paperwork gets lost, etc.

HAMP’s frustrations are shared equally among lenders, servicers and borrowers. The mortgage mod world has had to learn and implement a number of new and ever-changing programs. Professionals have also had deal with an influx of thousands of troubled borrowers with only limited staff, resources and training, not to mention considerable regulatory pressure.

The word from Washington is that borrowers are getting help even outside of HAMP. I don’t believe that the relationship between borrowers and lenders — inside or outside of HAMP — is as productive as Washington projects. To me, it seems like another example of Washington “spin” in an attempt to downplay HAMP’s lack of success:

Obama administration officials contend that borrowers are still getting help – even if they fail to qualify [for HAMP]. The administration published statistics showing that nearly half of borrowers who fell out of the program as of April received an alternative loan modification from their lender. About 7 percent fell into foreclosure.

Do you know anyone who has not qualified for HAMP, yet still received a loan modification from their lender?

We want to hear from lenders, servicers and borrowers: why is HAMP failing to get the job done, who’s at fault? Leave us a comment, let us know.

35 Responses to “HAMP: Borrower Neglect or Bank Incompetence?”

  1. Tweets that mention HAMP: Borrower Neglect or Bank Incompetence? | HSH Financial News Blog -- Topsy.com Says: June 23rd, 2010 at 11:31 am

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  2. Stuck In Florida Says: June 24th, 2010 at 7:08 pm

    I lost my job in March 2008 and have been trying my hardest to find something, at least my husband has been at his work for over 17 years so we have stability. We have been trying to get a mod from GMAC for well over 1 year. Always get a denial. A different answer each time( And I’ve tried almost every month).In January it was not enough income. In February it was Investor denied. In March I applied again. Never got a response back on that one so I was hopeful. We have a VA Loan, so I’ve talked to my counselor there many times. ANYWAY… He called me on June 17th(last time I talked to him was in March also) to find out how it was going and then goes on to tell me that our house in in foreclosure with a sale date of 9/29/2010! I couldn’t believe it! I haven’t heard a word from GMAC since March and now this? 2 days later I have some idiot banging on my windows and yelling at the top of her lungs that she was here to serve foreclosure papers! I am in shock! I thought I had some sort of protection through VA to help prevent foreclosure, I have read that while in a MOD review they aren’t allowed to proceed with foreclosure. This guy I talked to at GMAC said they didn’t review my last MOD request because I had agreed to a repayment plan, which is a complete LIE! why would I agree to a plan that was going to raise my 2900.00 mortgage to almost 4000.00, when I couldn’t afford my original payment??!! I am pretty lost right now, and very scared as to whats going to happen. I feel my my RESPA rights have been violated and sent them a QWR, but I doubt that will do anything and as far as the VA goes, I don’t know what is going on with them. Maybe they “hold hands” with the mortgage companies? I have been trying to get an appt. with NACA, I’ve sent an email to my states attorneys office, I’m not sure if i should get a lawyer- which of course I can’t afford. Or maybe we should walk away….AMERICAN DREAM MY ASS!

  3. Tim Manni Says: June 25th, 2010 at 2:27 pm

    Florida, This sounds really strange. I would contact a real estate lawyer right away. -Tim

  4. Stuck In Florida Says: June 25th, 2010 at 10:31 pm

    I was hoping to avoid giving away more money that we don’t have! Oh well…I guess someone is always cashing in.

  5. Marie in California Says: June 27th, 2010 at 10:23 pm

    I believe I am one of many who have been hanging back, knowing I only get one shot at HAMP and there are no appeals. I think now you will see us showing up in HAMP — we are the 99ers and those who have just been abruptly cut off from UI benefits. Here’s my situation: As soon as the first program was announced in 2007, I went into my local NACA folks to strategize getting out of my 80/20 interest-only mortgage and into something sustainable. At that time I had a job. My servicer said I didn’t qualify for a re-fi because I was not in arrears. They suggested I show my ability to pay interest plus principal, which I did, and try later for a re-fi. I even changed jobs so that I could afford to do that. Then the recession hit big-time and being last hired I was first fired (May 2008). I’ve been on unemployment ever since, applying for any and all jobs I could find (hundreds) but not getting more than a handful of interviews and no offers. The last time I checked in with NACA they said the Obama programs would not recognize unemployment income, especially for a single person. Recently Obama announced a new program that would recognize UI income, but it was voluntary, and obviously the lenders and servicers were balking. I decided not to bite – again, I only have one shot at this, and there are no appeals. Meanwhile, although unable to continue paying principal, I’ve kept up to speed on the interest only. Unfortunately, since Congress knifed us in the back last week, I will be getting my last unemployment check next week. I’ve applied for my state pension, but that is only $900 per month, so I will quickly fall behind on mortgage payments. However, I am not sure if my retirement income is enough to qualify for the HAMP program. The job market is about to get even more brutal than it has been, but I will continue to aggressively search for work. I believe there are a lot of people like me who have been painfully making our payments on time under harrowing conditions, trying to preserve our credit scores and pay down our debt to enhance our DTI. We have not yet surfaced into the HAMP program, only the most desperate have, and their performance, as expected has been uneven. (The lenders and servicers have not acted in good faith, however. My NACA counselor tells me horror stories.) Now it will be our turn to go under the wheel and see who makes it out alive, under very changed economic circumstances.

  6. Tim Manni Says: June 28th, 2010 at 4:10 pm

    Marie in Cali, Thanks for commenting. You mention both HARP (refi) and HAMP (mod) in your comment. Before you decide to enroll, you need to make sure which program you are targeting since the requirements are different. You may want to check out the Home Affordable Unemployment Program (UP). This is from MakingHomeAffordable.gov: 21. I am unemployed. Can I still get a mortgage modification? If you are unemployed, ask your servicer immediately for consideration through the Home Affordable Unemployment Program (UP). (See “Home Affordable Unemployment Program (UP)”) for eligibility criteria and for more information. * If you are currently in a HAMP trial period and just lost your job, you may request to be considered for UP as long as you entered the trial period plan before missing three full consecutive mortgage payments. * If you are unemployed and were previously determined ineligible for a HAMP modification, you may be eligible for UP. If you are currently in a permanent HAMP modification and just lost your job, you will not be eligible for UP. You may still be eligible for other foreclosure alternatives, including the Home Affordable Foreclosure Alternatives (HAFA). Please contact your servicer right away for more information. (See “Home Affordable Foreclosure Alternatives Program (HAFA)”) While you are being evaluated for UP, servicers who have signed a HAMP Servicer Participation Agreement (SPA) are not permitted to refer you to foreclosure or conduct a foreclosure sale. Visit http://www.MakingHomeAffordable.com/contact_servicer.html to find out if your servicer is a program participant. Hope that helps, keep us posted, Tim

  7. Marie in California Says: June 30th, 2010 at 2:41 pm

    Update: Just returned from an appointment with my NeighborWorks counselor and looked over current options. Since my mortgage is owned by Fannie Mae I am applying for their forbearance program. If accepted they would reduce my payment by up to half for up to six months and then automatically review my situation for the Making Home Affordable program, which would be great since my property value has decreased 50%. Since my unemployment (federal extension) ended two days ago, I would not qualify for the FHA’s UP program. Until I can land a job, my sole income is $900 a month from my state pension, which I will begin receiving in a few days. I have one last tiny 403(b) that I will need to draw on to make ends meet until I can find work. Two downsides of the forbearance is that it does ding your credit rating short term a bit and you can’t leave it once you are in it (i.e., if I were to get a job); and it only covers the first mortgagor, not the second. The big upside for me is the prospect of getting reviewed for the Making Home Affordable program at the end of the six months. I should hear something in about three weeks.

  8. Tim Manni Says: June 30th, 2010 at 4:35 pm

    Marie in Cali, Thanks for the update! We’re glad to hear some options are freeing up for you. Remember, we have written stories in the past of borrowers whose credit scores have fallen due to HAMP. Here’s an example: http://blog.hsh.com/index.php/2009/07/loan-modifications-are-hurting-credit-scores/ Keep me posted, Tim

  9. Marie in California Says: June 30th, 2010 at 10:14 pm

    Thanks for the link re credit score dings for going into these programs. The article and comments are from late 2009, so I’d be interested in a refresh — anybody have any comment on the current state of affairs? I’ve got a couple of weeks before I decide whether to sign on or not. Thanks!

  10. Tim Manni Says: July 1st, 2010 at 10:00 am

    Marie in Cali, You’re right, an update to that one is a great idea, thanks! -Tim

  11. Rachel Says: July 2nd, 2010 at 11:30 am

    This is an interesting conundrum. It seems that the program had fairly good intentions, but people just aren’t ‘buying’ it, as if they assume the program will fail. I would recommend looking at Ilyce Glink’s article- http://real-estate.equifax.com/2010/07/unemployed-new-hamp-loan-modification.html – because it shows the restrictions that are pulling people away from the program (such as not being eligible if you are a spouse of the unemployed).

  12. J Hoffman Says: July 10th, 2010 at 11:22 am

    The claim that borrowers are failing HAMP because they are not providing documents has to be a farce and a conspiracy. Just this week we became victims of this. We qualified for HAMP and have been working with Wells Fargo for almost a full year. Last week, out of the blue, we received a letter saying we have been kicked out of the program because we did not provide required documents. We have the most complete record of notes, documents sent, including our own recorded conversations through this process. We were told on June 26th that no further documents were needed and that we were about one week away from hearing back from the treasury dept. as to what our modification would be. Now we are being treated very strangely every time we call. They are admitting, at first, that we were not notified that there was anything needed, then they seem to read further in to some notes and they want to transfer us to some other department. Last night they tricked us in to giving all of our financial information over the phone once again, as we did when we first called to qualify. We gave the same financial information and the woman told us we did not qualify for anything but a short-sale. We worry now that any attempts that we had gotten them to make, to put us back in to the program because of the mistake, will now be jeopardized because we “don’t qualify” for HAMP. Is there some kind of consumer protection agency for us????

  13. Lynn Says: July 11th, 2010 at 10:11 am

    We have recently been denied HAMP by our lender after making 5 on time payments on the trial mod, reason: Failure to submit required documents. Hmm, we have sent, re-sent, and re-re-sent the required documents, and told after numerous phone calls to the lender that all necessary documentation has been received. My husband and I are both working a full and part time job trying to keep our home, and were able to make the HAMP payments. Now the lender is looking at a custom modification. You bet!! What a crock!

  14. Marie in California Says: July 15th, 2010 at 8:29 pm

    What is really worrisome to me is that, when these jokers go before Congress and answer questions, they make it seem like they are the guys in the white hats doing everything they can, even asserting that they have programs for folks like us that are even better than the government programs. The tenor of their testimony paints us as the problem when in fact there are mountains of evidence that they are dragging their feet, delaying, and stepping up to the bailout trough to keep themselves afloat – never mind us. It’s disheartening. I feel like no one really understands what is going on and we are getting thrown under the bus whenever it’s convenient, whether it’s desperately needed unemployment benefits or these foreclosure prevention programs that never seem to work out for us. The tactics of the mortgagors and servicers is designed to wear us down, but really, none of us has any options except to keep fighting. It’s just demeaning and unnecessary. We are going to be suffering as a country for this for way longer than we ever needed to.

  15. Tim Manni Says: July 19th, 2010 at 10:18 am

    J Hoffman, Sorry to hear about your struggles. What I find so ironic is that Washington (who backs the idea that some borrowers are not providing all the required paperwork) is creating a Consumer Financial Protection Agency in this Financial Reform to protect borrowers from lenders, yet can’t seem to help or protect the borrowers enlisted in a program they created. I would suggest talking to an attorney. Also, we’re glad to hear you kept such careful records, you’ll need those to argue your case. Good luck, Tim

  16. Tim Manni Says: July 19th, 2010 at 10:21 am

    Lynn, Just like J Hoffman, keep careful records of each time you sent those documents. All request that they send you proof they received those docs. I can’t believe it took Washington this long to require that lenders not begin the trial period until all docs are received. Keep us posted, Tim

  17. Tim Manni Says: July 19th, 2010 at 10:32 am

    Marie in Cali, I just think that the suits in charge of these big lenders can really appreciate what’s happening on the street level. Also I think part of the problem is that Washington created this program to prevent foreclosures for millions of people and every person situation is different. I just feel so bad for people that have seemingly exhausted their options with their lender — every time they speak they get a different answer. I do admire your resiliency, keep fighting, Tim

  18. Marie in California Says: August 2nd, 2010 at 2:31 pm

    I just got a letter from my mortgage servicer, Aurora Loan Services, that I’m being transferred to IBM Lender Business Process Services. I don’t know whether this is in retaliation for having applied for a forebearance or not. Aurora claims not, that it was just a business decision. Does anybody know anything about IBM? Their track record? Any suggestions on where to look for evaluations of their performance in the mortgage industry?

  19. Tim Manni Says: August 3rd, 2010 at 8:53 am

    Marie in Cali, This isn’t uncommon. From what we have been reading, distressed-asset sales are beginning to pick up. I don’t know the particulars of your loan (are you current, are you seeking a loan mod, etc.), it was likely “a business decision” as Aurora says. Lenders can buy “distressed assets” very cheaply, and if the lender thinks the loans they are buying have a chance at staying current or at least continue paying, then they have made a good deal. Don’t be too alarmed by the fact that your loan has been sold and you know have a different servicer, just continue to be diligent and to keep extremely detailed records of your conversations (dates, times, duration of calls, who you spoke with in which dept, etc.), and do your best to pursue a home-preservation program (I’m not sure if you’re trying to refi or get a loan mod, you mentioned a forbearance). Keeping careful records that you have expressed a financial hardship that is making payments difficult is very important. Please keep us posted, and best of luck, Tim

  20. Doug Says: August 10th, 2010 at 9:48 am

    This is the ugly business side-effect of HAMP. A lender sells the mortgage to an investor for pennies on the dollar. Most of the time, the “investor” is a subsiderary of themselves. They now have $10,000 invested in your $200,000 mortgage AND a $190,000 loss on paper. They DO NOT want to work out a plan. They want a short sale or foreclosure sale. If they can turn a $10,000 investment into a $60,000 sale in less than a year, multiplied by thousands of homes plus the tax deductions of the original loss… You get the picture. The government knows this scam and doesn’t care. If they did, they’d alow us to buy out our mortgage at the real current value. Aurora bought my $160,000 mortgage for $10 from their parent company, Lehman Bros. FUnny that they seem to misplace paperwork, don’t send out forms, keep offering short-sale options, etc. I went to the register of dees and got a copy of the note transfer that shows Aurora paid $10 for it. HAMP is a joke. It is a dangerous situation we are in. I’m sorry for all of us. They only hope is in the forms of some bankruptcy courts actually realizing the scam and invalitating the notes all together. Have a lawyer review the following precedences and get a copy of your note from the register of deeds office. It’s time we fight them at their own game. Judge Arthur M. Schack of Kings County, New York, in HSBC Bank v. Valentin, 21 Misc. 3d 1124 [A] Deutsche Bank National Trust Co. v. Harris, Judge Arthur M. SCHACK. Kings, New York, Index No. 39192/2007 U.S. Bank National Association v. Ibanez, Massachusetts Land Court Misc. Case No. 384283 See:

  21. Adele Says: December 2nd, 2010 at 7:26 pm

    I could write a book on the loan mod fiasco. I’ve been trying to modify my loan since Mar 2009. It is now Dec 2010. The servicers and investors are dishonest and do NOT WANT to modify loans. Period. Their actions are criminal and prosecutable. The strategically planned incompetency of the loan mod process and employees of the banks and investors is astounding. Does anyone remember such incompetency when they were approved for their loans in the first place? Sometimes it feels like we are like those Jewish people who boarded the trains for Auschwitz without a fight knowing by then what awaited them at the other end. Where is the public outcry and public protesting?! And don’t tell me that over 10 million Americans facing foreclosure caused this mess.

  22. Emmanuel Merenini Says: January 18th, 2011 at 12:35 pm

    I have been on trial period since June 2009. Before the trial period, our monthly mortgage payment was $2968. We received a final letter of agreement which was sent to us on May 3, 2010, asking for our signatures for a modified amount of $2908. We asked them to reconsider and work to reduce the number. We sent letters and e-mails to the CEO and President of Home Mortgage Barbara Desoer. None of them responded to our request. The so called Executive Customer Advocates boasted that we cannot reach any other higher ups but them. We received a letter yesterday telling us that we are being denied because we said that we did not want to accept the offer they gave us, which is inaccurate. This where we are right now.Going on for almost 2 years this coming June. They misplaced paperworks like I have never seen before. You have different people claiming that they could not reach us over the phone. No phone messages to prove that. They are very disorganized and only care about the bottom line profit. I am stuck and don’t know what to do. They feel very powerful and have no regards for the guideline established for the program. Regards, Emmanuel Merenini

  23. Shelby Says: February 18th, 2011 at 6:36 pm

    Just this week,,2/18/2011,,, I was sent the Hamp agreement from USBank. After ten months of calling, waiting, and going through the “trial” payment plan, which was to be three months, but stretched to six months, my morgage was modified, by 150 dollars. considering I lost 112 dollars in social security disability, to medicare payments, dropping my only income to 1226 dollars a month, It all seemed like a waste of time and effort.

  24. Tim Manni Says: February 18th, 2011 at 6:45 pm

    Shelby, Hey at least you’re up $38 instead of being down $112. Thanks for commenting, Tim

  25. judge allslop Says: July 1st, 2011 at 5:46 pm

    Under rules of HAMP, the Bank (pretender lender)must have possession of the note to qualify. They don’t.They disqualify the applicant instead, then frauduently foreclose when the Bank never had standing in the first place.

  26. Steve Solomon Says: July 25th, 2011 at 12:23 pm

    After loosing my Job after 29 years without any severance pay I was devastated. For the first I was able to pay my my mortgage paying interest only because I had that option when we purchased our home. On Oct. 2009 I received mail from the Us bank that the terms of payment changed to Principal and interest. My payment went 2500 interest only to 3300 Principal+interest. It was impossible to pay for us that amount. I kept on sending every month what I could afford. At the same time we started working with NACA if they could help us. Unfortunately us bank refused to work with NACA. Every time I call the bank they will tell “we have never received NACA resolution”. NACA will tell me they have received. Finally NACA admitted that Us bank is not on board with them and instructed me to work directly with them. I started HAMP program with the bank. They told me I failed NPV?. At this time my income changed, found job after 2 years. I did reapply my income qualified me FOR HAMP. After three weeks when I called the bank to check with the HAMP status. First I was told my home is foreclosure as per last month due you to not paying full payments every month. Then the told me I FAILED negative NPV. I told them to explain to what it means. Then then they said you have an equity on your home therefore you are qualified. Now, I am trying to find out if this is a disqualifying factor. Looking at at the HAMP guide lines i believe it is not. I pleading for help with my reps and OCC.

  27. Tim Manni Says: July 27th, 2011 at 4:10 pm

    Hey Steve, Thanks for commenting. NPV= Net Present Value This blog post explains everything: http://blog.hsh.com/index.php/2011/07/new-hamp-tool-could-lead-to-more-modifications/ Good luck, keep me posted, Tim

  28. charles williams Says: April 7th, 2012 at 5:08 pm

    The bank is judge and jury. There is no government office that oversees this program, thus, we are right back where we started. After what went down with the mortgage system, how do we as voters allow the banks the opportunity to continue deceiving us? We dont want big government,but companies cannot be allowed to oversee themselves. That is plain common sense. We need some kind of audit procedure of what practices the banks are now engaged in.I have income of over $50k per year, lives alone,over 66 year old,on pension,social securty and self employed with almost no tax liability,owe no creditor,was a real estate salesperson and mortgage broker,with two heart attacks- two stents and double bypass without insurance when they occurred, but i am being denied a modification. whats wrong with this picture? I have no one to protect me. The programs have no flexibility.My present income is comparable to about $75K with taxes/ss/med/ins deductions. I have already expended over 300k on this propery. I need help!!!

  29. Tim Manni Says: April 11th, 2012 at 11:24 am

    Charles Williams, Technically the FHFA oversees Fannie and Freddie, hence they oversee HAMP. Did you get an explanation of why you were denied? I believe you have to be notified in writing of why you were denied. Thanks for commenting, Tim

  30. Dave Bradley Says: May 16th, 2013 at 9:58 pm

    maybe you can tell me why we are not qualified. This letter is a little vague. Dear Customer, Thank you for your recent application for a modification under the Making Home Affordable Program. Based on our review of the documentation you provided, you are not eligible for a Home Affordable Modification. We are unable to offer you a Home Affordable Modification because in performing our underwriting of a potential modification we could not reduce your principal and interest payment by at least 10%. You have 30 calendar days from the date of this notice to contact Ocwen to discuss the reason for non-approval for a RAMP modification or to discuss alternative loss mitigation options that may be available to you. Your loan may be referred to foreclosure during this time, or any pending foreclosure action may continue. However, no foreclosure sale will be conducted and you will not lose your home during this 30-day period. Please note the foreclosure sale will not be suspended for this 30-day period if the court with jurisdiction over the foreclosure proceedings, or the bankruptcy court in a bankruptcy case, or the public official charged with carrying out the sale fails or refuses to halt the sale. The Home Affordable Modification option is designed specifically to allow existing homeowners to keep their homes by making mortgage payments affordable, however the plan will not help everyone. We verified your gross income as $6,383.25. If you believe this information is incorrect, please contact us at 1-800-746-2936 IfI’m not eligible for a Home Affordable Modification, then what do I do? Remember at Ocwen, HELPING HOMEOWNERS IS WHAT WE DO! TM. We understand that unanticipated changes in your financial situation can impact every area of your life, including your ability to pay your mortgage obligation. Our Associates and Home Retention Consultants are trained to work with you to set up a plan of action specifically designed to address your current circumstances. Below please find abrief description of possible solutions. – What should I do if I disagree with the reason for non-approval of a RAMP modification? If you disagree with the reason for non-approval of a RAMP modification, you have 30 days from the date of this letter to send a written explanation and supporting documentation to substantiate your findings. Please email a copy of this letter along with any supporting documents to HAMPNPVCases@ocwen.com or mail to: Ocwen Loan Servicing P.O. Box 785061 Orlando, FL 32878-5061 This

  31. Tim Manni Says: May 22nd, 2013 at 9:25 am

    Hey Dave, So sorry I haven’t responded sooner, I kept trying to reply yesterday but the system was deleting my comment. Anyway, unfortunately the letter is pretty clear as to why you haven’t been approved: “We are unable to offer you a Home Affordable Modification because in performing our underwriting of a potential modification we could not reduce your principal and interest payment by at least 10%.” Here are two links that explain more: https://www.hmpadmin.com//portal/programs/docs/hamp_servicer/sd1202.pdf (pages 8-9) and https://www.hmpadmin.com/portal/programs/docs/hamp_servicer/npvmodeldocumentationv50.pdf (page 7). Underwriters need to ensure that modifying your mortgage will result in a substantially lower payment for you. If not, they’re betting you will have equal trouble affording the modified mortgage as opposed to the original mortgage. I know this isn’t good news but I hope it was helpful. Thanks, Tim

  32. c hilton pina Says: October 19th, 2013 at 9:38 pm

    I qualify for HAMP was told that I didn’t but did for in house. Prob in house didn’t de rease rather increased by 975 per mo. Result default on third payment of trial. I thought mod was to lower not increase and certainly not by an addl 1000 per mo

  33. Lisa DiCenso Says: April 1st, 2014 at 3:54 pm

    The biggest problem with the HAMP are the people hired to operate it. Most of them don’t return calls or actually don’t know how to assist. The mortgage servicers/banks are not held accountable, don’t know or ignore the programs avaialable for homeowners in distress and applying and reapplying for a loan modification just adds to the deliquency balance. The information obtained from the US Treasury’s website clearly states the qualifications however banks ingnore the information. The government subsidized agaencies available to assist only assist in filing the paperwork they do not fight to get the homeowner a loan modification and in some cases, make the situation worse by not providing accurate information to the homeowners. The HAMP should be operates by an office in Washigntion right out of the White House. That should make every bank, lender and servicer tow the line!

  34. M Coleman Says: April 8th, 2014 at 6:18 pm

    I’ve been trying to “fix” my mortgage and property tax issues unsuccessfully. There is a company called, “E.M.A. Law Firm P.L”, who contacted me, and got me to sign a contract without reviewing it first. I have since cancelled it, but they keep calling me to change my mind. Here’s the problem: they want to do an auto deduction from my bank account of $625 per month for 4 months, to pay the retainer fees, while having me email financial documents to them upon request, and promising me that the bank cannot foreclose in that time period. But, here’s the problem: if I could afford to pay that amount to them, I wouldn’t be behind on my mortgage payments and could get caught up. The person I spoke with from this company intimated that i could just not pay the mortgage payment for those 4 months, enabling me to pay their fees. Now, I read on another web site that any legal fees for a loan modification could be worked in with any other fees, and not paid up front, before anything is done for me. Not what this guy said. From what I’ve read on this particular site, I’m even more wary of loan modifications than i was before. I’m also looking at Reverse Mortgages, but not so sure I’ll qualify. First and foremost, the property taxes that are delinquent would have to be made current. That would involve a bank loan, and if the reverse mortgage didn’t come through, the loan ANd the mortgage would both have to be paid! No can do! I can’t seem to find anything but advertising for these companies online when looking for any agencies, etc. that can and would really help. Not from shysters or crooks, but from legitimate outfits who actually WILL help out folks. I thinking I should load my van up with whatever will fit into it, including my pets, and just drive away. Unfortunately, I’m 65, and my power chair needs to be recharged each night, as does my cell phone. So, what’s a person to do? Who should I believe? How do I know the next rep from some company isn’t going to scam me, too? I now trust NO one; not banks, not lawyers, and certainly not the government! They are all out for themselves, to make tons of money, and they don’t care who gets hurt in the process. So what is your solution?

  35. Tim Manni Says: April 14th, 2014 at 1:02 pm

    M Coleman, Please be careful, what you described sounds just like a loan mod scam! Good thing you cancelled it. Please check out MakingHomeAffordable.com, that’s the governments loan mod website. Don’t ever pay money upfront, don’t ever sign anything over to anyone.

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