LOAN MODIFICATIONS
The new year just brought us our first HAMP modification. The benefits of a HAMP modification are tremendous and can keep you in the home for forty more years at an affordable monthly payment. HAMP modifications should be pursued with great intensity in every case where it is even remotely feasible. Be aware that HAMP modifications are very difficult to obtain because of much confusion caused by the servicer in what appears to be an attempt to deny homeowners the benefits of HAMP.
Loan servicers say that you are only entitled to be reviewed for a HAMP modification only once. Your total debt to income ratio is highly relevant in the computation to determine if you qualify for a HAMP modification. It is reckless for you to apply for a HAMP modification without knowing in advance that you carry too much debt. You must conduct your own HAMP qualification test before you actually apply for a HAMP modification. If your debt load is too high, consider filing a bankruptcy to reduce that debt load so that when you do apply for a HAMP modification your debt load will be within limits that allow you to be approved for a HAMP modification.
A HAMP modification will take you a minimum of six months, and more likely 18 months. You will constantly receive letters saying you didn't comply with the last request for information. Each of these letters must be responded to by certified mail, return receipt. It is not unusual to have 30 or more of these communications before receiving the final approval/denial of your HAMP modification request.
You may want to have a professional assist you in your HAMP modification.
Sincerely,
George Gingo and James Orth
Several lawsuits have been developed to challenge the banks not complying with HAMP. Here is a nice class action lawsuit on HAMP: Class Action Complaint.pdf But, courts have been making orders saying you have no right to sue under HAMP, like this order: Williams ORDER denying prelim. inj. pdf.pdf Oddly, a court in San Diego just went the other way and denied a motion to dismiss (albeit, it can be renewed) under HAMP: Huxtable Order.doc Since that is an impressive change of events, it is important to read the Plaintiff's opposition, which is here: Opposition to Motion to Dismiss, Huxtable.pdf
Here are some miscellaneous HAMP materials:
HAMP FDIC Copy of loan mod reporting template.xls
HAMP FDIC Copy of NPV.xls
HAMP FDIC counseling agreement.doc
HAMP FDIC Loan Mod Appendix.pdf
HAMP FDICLoanMod.pdf
HAMP FED - Buying a home.pdf
HAMP Fed CitiMortgage Servicer Participation Agreement.pdf