The Trouble With Loan Modifications....

Posted on 12/04/2009 at 12:00 am by Viewed 4,215 times

The majority of our clients have a great amount of difficulty trying to work with their mortgage servicers to determine whether or not they qualify for a loan modification.  They are shuffled from one department to another, told contradictory information, and after submitting their information have to deal with the servicer claiming it never received the documents (even if there is a signature card suggesting otherwise).  Even after the servicer acknowledges receipt, no decision is forthcoming for at least 60-90 days.

Learn About The Making Home Affordable Program (“HAMP”)

The Making Home Affordable Program (“HAMP”) is supposed to help homeowners so that they don’t have to suffer through this fate.  Unfortunately, most borrowers don’t know enough about this program to navigate their way through the system.  Most of the major servicers signed a contract with the government requiring them to evaluate all of their borrowers either in default or at imminent risk of default to determine whether or not they qualify for a HAMP modification.

HAMP Can Reduce Your Mortgage Payments

If a borrower qualifies for a HAMP modification, their payment will be reduced to 31% of their gross income.  The servicer is able to do this by reducing the interest rate on the loan to as low as 2%.   While the loan modification process can still be overwhelming and frustrating, HAMP is supposed to make it easier for borrowers. 

Ask Your Mortgage Servicer to Evaluate You for HAMP

When you call your mortgage servicer, make sure to ask for them to evaluate you for a HAMP modification.   For more information of the HAMP program and participating servicers, refer to the following links:

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